Banter and general comments, page-27108

There is no doubt that Shorts should be around. But at the same token there has to be a mechanism that works for everyone.

For example, during the recent banking crisis in US, the Shorts absolutely killed it, causing fear and panic across the board. At that point, in my opinion, to stop fear, and more fear, there should have been a temporary ban on shorting banks to resolve the crisis - yes you can argue that capital markets will be inefficient, but some times you need to do what you need to do.

If the hedge funds, can short big banks and bring them down, then imagine what they can do for companies worth billions- In the scheme of things that is peanuts for them, and this is what they are doing in the lithium sector. From PLS, AKE, MIN or CXO, SYA go check their top 20 shareholders out, and you will see none other then State Street (Who are actually a custodian service). I was checking out the BHP, S32, FMG register, and they are up there as substantial holders. Looks like they are targeting the whole material sector. Once upon a time they were targeting the whole travel sector.

Should there be a limit of shorts? Maybe? I don't know - but this feeding frenzy will go on and on - ASIC will never ban it for smaller companies or materials sector, because it does not go and shake confidence in the markets - but for big banks they may do so as required - and it has been done in the past.

My two cents!!!