Hi justfriendau, A very interesting and thought provoking paper, adding fuel to the fire of discussions around the issue of shorting, that has been debated around the forums for many years. I’ve always considered that shorting has some very complex layers to it, and the wider effects on the economy, and the effects on the individual wealth of many members in funds and super funds, would be relatively hidden, and the returns made to look a bit better than bank interest, due to the manipulative powers of these entities, and their high frequency technology, which all passes as being legal in this country.
Strong companies tend to be able to survive the activities of shorting, whereas, others with less might, have been sent to the wall.
A very interesting paragraph about the temporary banning of shorting during the GFC, and the subsequent improvement in the economy. Hmm...Very interesting!
GXY Price at posting:
$3.52 Sentiment: Buy Disclosure: Held