Thursday, August 11, 2011
11 Aug 2011
The decision to ban short selling in Europe is absolutely idiotic. But, what else can we expect? Short sellers are the only people that buy in the face of panic. For example, I was buying to cover at the close of Monday and the close Wednesday. They also aid rallies as they are squeezed and close at losses. You could say people like me caused the crash in the first place, but I shorted this crap months ago when the market kept going up, and I stayed patient. I didn't complain about the long that I sold shares to that was immediately up after I sold them to them.
"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls . . . become 'profiteers', who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished not less than the proletariat. As the inflation proceeds . . . all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless."
-- John Maynard Keynes, "The Economic Consequences of the Peace", pages 220-223 (1919).
at 7:58 PM