traders plunder super, page-57

have i fallen asleep and awoken in bizaro world??

1 - short selling occurs not because of some fundamental move to reduce prices, but because short sellers think the price is higher than it should be.

2 - short selling is not some secret trading strategy. it is basically selling first and buying second. they can't keep selling forever. it is the same as what you do, except in a different order.

3 - short sellling is ESSENTIAL for the efficient operation of financial markets.

4 - superannuation funds usually are not allowed (in their mandates) to short sell. it is their custodians who lend the stock super funds hold.

5 - the reason the welfare budget is $90 plus billion is to fund the middle class welfare system the Howard Government used to bribe the populus for 10 odd years - including benefits for self funded retirees, the baby bonus, childcare rebates etc

6 - notwithstanding the medicare levy, the amount raised is more than the budget. the gov likes to keep the diff.

7 - fund managers - moral? are you kidding. they are paid to make money. i never hear complaints when they lending stock in a rising market?