May 4, 2009
As a trader since 1996, I have seen history making bull and bear markets. Despite the arguments for an equal and fair market for all, it is apparent that those who have the money control the prices. In regards to short selling, this practice is economically dangerous and counter intuitive to the public good. The markets exist to allow companies to grow, raise capital and florish with ideas, technologies, and products. BY DEFINITION of needing capital to finance growth, these companies are more fragile than others simply due to real economic cash flow differentials. It is completely wrong to allow those short selling individuals to abuse this fact and purposely try to sabotage this growth and/or this company. It is basically NOT an opportunity for those to bet against a struggling company but rather it is an opportunity for individuals to risk money in hopes of participating in a struggling company's turnaround or be a part of a company's growth. Eventually, it is ALWAYS easier to go out of business than to prosper. If the SEC continues on the path of an equal playing field for long or short trades, then you should expect the national economy to flounder and the companies that need risk capital will eventually end. Do the right thing and allow the capital markets to provide capital and those individuals who choose to invest in these companies to either lose or win on their decisions and risk capital. If you want to referee a fixed game, then allow the short sellers to continue, expect the big money to BET AGAINST the american companies and expect capitalism and the greatest capital markets in the world to diminish to gambling pit with a small number of large companies only who neither grow, nor need capital.