This idea that shorting is evil or immoral is an absolute...

  1. 271 Posts.
    This idea that shorting is evil or immoral is an absolute nonsense.

    Shorts create liquidty for starters.

    Shorts also keep management of companies honest.

    This comment about people who short stocks like BNB is really way off the mark.

    Quote

    "I really wish the shorts would do some research and analysis like I do....but it seems they would rather lie, cheat and steal to make money."

    end quote

    When people suggest that people who short stocks should do some research and analysis,it is obvious that they have and made a ton of money shorting these stocks all the way down from $34 to $9.

    It is the people who are long who are wrong in this instance.

    Take a look at stocks like Enron or Tyco in the US or stocks like Qintex,Westmex Bond Corp etc during the last boom.

    Most of these companies that have been shorted into near oblivion have fully deserved it.Most are basket cases that are up to their eyeballs in debt with broken business models.

    Anyone can borrow huge amounts of money during a boom to pay wildly inflated prices for second rate assets.

    The real businessmen will buy these assets at firesale prices of 10 or 20c in the $.

    The mantra buy low and sell high, applies to all asset classes.

    Most of these donkeys did it arse about.

    So don't complain about the shorters,complain about the dreadful managers running these companies,they are the ones who should be horsewhipped.

    Shorts keep the bastards honest,not the other way round.
 
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