April 21, 2009
It is completely absurd that short selling should be banned. Anyone who speaks out against it is missing information on how it actually works. The mass public is emotional due to the losses incurred in the last year-- and are looking for something to point a finger at. The media etc. have given them short sellers.
A better first step would be for the SEC to enforce the laws on naked short selling. In reality there are a number of investment vehicles that allow you to short a company. Banning short selling will only encourage a little more ingenuity in the financial world.