shorting, page-8

Fair comments vmp. My own belief (and its just a view I have) is that shorting per se is not the problem. The problem is the market power large institutions have (whether they buy, sell, short or whatever) due to, but not limited to:

1. They have tons of money to put into various stocks and the amount they have generally dwarfs the available liquidity, so their actions move prices (or not - eg. controlling prices at low levels while they accumulate, and marking prices up when they are ready to sell) and they know it and take advantage of it

2. Their practices associated with "research" recommendations - advising investors to buy when they are selling, and vice versa

3. Their practices associated with capital raisings - in many cases dictating terms that are favourable to them (eg. telling companies they will not invest or underwrite a CR unless they get what they want)

4. The unfair access to information they have through contacts with company boards and management, invitations to investor/insto briefings we don't get

Cheers, Sharks.