Thursday, September 18, 2008
Polyanna to be appointed SEC chief
When you see headlines like this, you should grow very uncomfortable. This is the recipe for the next bubble. When all you can do is buy what are you going to do? Right, buy. Short sellers bring stability and sanity to a market by trying to find the truth in companies balance sheets and trading on what they perceive as an opportunity. I will be the first to admit that there has been abusive short selling and rumor mongering, but I don't recall there ever being a ban on buying certain internet companies stock in the late nineties that had more hype then substance. Short selling is needed and is NOT a bad thing as the media and gov. make it out to be. Much like speculators who grease the financial markets by taking the other side of the trade, short sellers balance out the buyers and keep companies "honest". Both speculators and short sellers are vilified and pilloried by the press for no good reason other than for someone to blame. Remember to have an up you need a down, to have good, you need evil, for happiness you need sadness. Its the way the universe works and the way its intended to be.
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