April 29, 2009
Please keep in mind that short sellers provide a valuable price discovery mechanism for investors by performing due diligence in uncovering companies with problems by doing their investigative homework. Short sellers didn't take the market down. That was accomplished by bad management and risky derivative instruments concocted by the banks, the brokers, the mortgage companies and the real estate industry. Uninformed buyers took the stock market and real estate markets to extremely inflated levels. Where was the outcry about short sellers then?
Please SEC. Ignore these ignorant comments about a total ban on Short selling altogether and concentrate on enforcing rules and limiting unbridled leverage which is largely responsible for getting us in this situation in the first place.