From... Should shorting be suspended/banned?
Maybe a more appropriate question should be should hedge funds be suspended/banned or more tightly regulated.The hedge funds have only themselves to blame
The people who were big victims of the shorting action were the clients of those who loaned the stock. They remained long in stocks and saw their unscrupulous managers lend stock to shorters who destroyed the value. The ruthless superannuation funds mangers who undertook those actions should have been fired. Now they can't do it and their clients are the winners.
The hedge funds are going to suffer big losses depending on how much time they are given by their supporters to cover. Many of the world banks loaned large sums to these funds and they will incur well deserved losses."
It reminds me a bit of the firearm debate. Who should have access to them, should their purpose for existance be better defined, regulated and accountable?
To what extent are hedge funds responsible for the excesses in the economy and stockmarkets... oh, and the negative stigma towards short selling?