shorting issue..., page-8

Lets look at the process of creative destruction. Should we apply this across the board, not just to the ASX. i.e. should we allow Coles and Woolies to destroy the smaller weaker players in the market. Should we apply this process to humanity. Should the strong take advantage of the weak. How far do we wish to take this process. Capital is raised by the issue of shares. The trading of existing shares has nothing to do with the allocation of capital. Personally I don't agree with short selling, but I can accept it within boundaries. What I disagree with is the lending of stock to facilitate the practice. The ordinary punter is not in a position to do this. If you wish to allow the speeding up of the destruction process, then one could argue that where Directors know that shorters are working their stock, then they should have the right to do whatever it takes to prevent the destruction process if they are able to. This may mean that as long as they can prove they were doing things to improve the share price for shareholders then they shouldn't have to disclose everything, as the shorters don't have to. I know none of us want that, so I see it has to work both ways. No offence meant to you swap, just my opinion.