In Defense Of Speculators
This morning's Ahead of the Tape column in the WSJ discusses the absurdity of targeting short-sellers during downturns.
"Some free markets are apparently freer than others: The price of oil is free to fall, while the stock price of a bank is free to rise.
That is one takeaway from Washington's recent response to market turmoil. By singling out "speculators" who want to push bank stocks down and oil prices up, lawmakers and policy makers reinforce a message that the free market is a wonderful thing as long as it isn't going against you.
It is a potentially slippery slope."
Apparently, Free markets means free to go up only . . .
Easy Targets: In Defense Of Speculators
WSJ, July 17, 2008; Page C1
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The political flailing of this lame-duck administration and Congress is a thing to behold. The prime dealers for institutions and hedge funds don't allow naked short selling. This is basic! Naked short selling doesn't occur with the volume necessary to drive down the price of a stock to the level that warrants the attention of Chris "California Dreamin'" Cox .
Posted by: bonghiteric | Jul 17, 2008 9:09:04 AM
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