Oh no doubt it will make it worse short term, but thats not short sellers fault - its the Authorities fault for gutting the market.
You see, what you have now in the market is everyong buying and causing the market to fly and the next day everyone selling and causing the market to crap itself.
What benifit short selling offers is, when everyone wants to buy shorts keep the rally in check by shorting and when everyone wants to sell they hault the decline by taking profits.
Thus reducing volatility.
Short Selling needs to be reintroduced ASAP as if this keeps going on and the market is really freed up those 5% swings will become 9% swings, then 15% swings - of course in a bear market it will end up in a crash.
