The problem group I see as the super funds, because they have a legally enforced mandate to extract (read tax) everybody's income by circa 10%. That floods them with funds and in turn floods the ASX with shares for shorting. Even if only a tiny percentage is used for that purpose it still probably represents billions, and the accounting rules for super funds are not like any other operation, because they would all be insolvent if they reported according to normal company accounting rules. Under these conditions that is the only group I would argue should be specifically and legally barred from short lending, as it actively suppresses the market. I don't have a problem with the shorting market in practice, but I do with an industry with a legally enforced monopolistic taxation right having a vested interest in stealing from the same group of people who are legally forced to be their clients - which is effectively what is happening indirectly, if not actually directly.
Anyway - back to charts. Sitting on 170 for too long me thinks.
GXY Price at posting:
$1.70 Sentiment: Buy Disclosure: Held
