short selling is not the problem, page-18

If you are talking about targtted short selling, then in that case it is also probably a time to have a better look over the company & its current value. It's not often companies would be targetted for no reason - don't forget we have come out of a bull market that was highlighted with bubbles & irrational exuberance with holders dreaming of fast tickets to the multi-millionaires club on their favoured stock - many prices of stocks being pushed far outside of true value, if a company is trading much higher than where it should really be - whats the problem with those that have picked up on those shortcomings betting against it coming back to earth. Exactlly the same principle of your own investment just on the flipside - you say it's cheap, they say it's expensive. You have to ask your self the question if the stock is being "slaughtered" by short sellers & the value diminishing then why aren't all the other smart cookies coming in & buying the bargains ? The simple answer is not alot of people view it that way - the larger portion believe it's overvalued that's why its heading down. Otherwise if you think it's so stupidly cheap then you should be thanking the short sellers for giving you the opportunity to buy at that level.

Don't forget there's also many cases when through heavily researching a company those same short sellers expose the crap ones - often "rumours" might indeed have more truth in them than the underlined implies. Afterall it was really James Chanos that sniffed out Enron & exposed it.