It’s also difficult to prove exactly how big a problem naked short selling is, and how much it played into our current economic problems. I’m not saying that it isn’t a bad thing. I’m just saying that I’ve never seen a convincing case that it has widespread, terrible effects. Usually the arguments I’ve seen are offered by some guy whose publicly-traded company started failing, and started to see their stocks getting shorted (which is perfectly legitimate). We can’t blame all of this on phantom trading.
UPDATE: Then I run across Andrew Cuomo’s promise to “probe” short selling, and I’m reminded of Ted Frank’s piece on prosecutorial zeal in our July/August issue. Every phone call from every hedge fund is going to get scrutinized, all because politically ambitious prosecutors have got to “do something.”
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
Was the President done in by the economy, or by the politics of the economy?
H/T to National Review Online