..hate shorts....today we learn why theyr good, page-70

The more I read this forum, the more I realise just how 'little' the majority here understand the markets. Liquidity is the most essential component of any free market. For all you perma-bulls out there, it creates depth. If that depth doesn't exist, particularly on the short side, what the hell are you gonna buy.
Here's an example. Say this whole credit crisis mess sorts itself out....everyone realises banks are grossly oversold....superfunds want in....they've got big orders waiting....but no sellers. The result is either
a)they don't buy because there's nothing to buy in the absence of short sellers, hence the market's dead,
or b) they push their order through, and in the absence of short sellers we have the likes of NAB trading at $1000.00. That's one hell of a price swing.....or bubble you might call it. Face it, ASIC went too far, too late. It's a typical knee jerk reaction. They're making the problem worse.