Short Sellers Back In, Dow Goes to 0

by billb 9. October 2008 12:18

Silly title because hey, one silly thing deserves another.  Like I mentioned before, blaming shorts for a downward market is just plain ignorant.  Shorts are with us through an up market ... if they have so much power, why isn't the market 0?  If anything, we witnessed some of the most turbulent times in the market during the shorting ban.  It was almost a slow crash over this last week.  So now that the shorts are back, we're having one of the calmer periods we've had in some time.  So when I hear people like Dick Fuld blaming the LEH collapse on short sellers, I just have to laugh.  And to think this guy got paid millions per year to run a well established company into the ground.

I'm not a fan of short selling, but I do like the fact that it's allowed.  Next time you hear someone blame short sellers for market down turns, volatility or companies going under, please remember in 2008 when they banned it and the stock market plunged.

Oh ya, and CNBC, please stop asking your guests for stupid predictions, especially you Mark Haines and Larry Kudlow.  It's a disservice to your audience when people who come on as authorities or experts make predictions on things that they can't have any idea of.  Unfortunately, I hear people around the office taking these "predictions" and giving some worth when they clearly have none.

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