Monday, 22 September 2008

The terrorists made Wall Street suck

Good grief. Now Wall Street "insiders" are claiming that short selling last week was due to none other than Al Qaeda. "A massive coordinated attack from London and Dubai" on the anniversary of 9/11? Begging your pardon, but isn't it more likely that other investment banks (with their own losses to cover) bet on the spectacular, well telegraphed nosedive that was about to occur?

Short selling can only contribute to the crash of markets that are overinflated in the first place. It can't "destroy value", whatever that means. Short sellers have to buy their shares from someone, at a fair market price, and sell them again, also at a fair market price (even naked shorts must one day cover, in theory). The companies in question have lost billions in market capitalization because the market as a whole has realised how little they are worth. (For a detailed rendition of the short-sellers-are-evil argument, see Why Short Selling Matters. Then be sure to read the comments, where it gets torn a new one six ways from Sunday.)

Terrorists my ass. Don't buy this one, people. Remember that the so-called masters of the universe go hand in hand with the masters of war. Always.


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