Tuesday, 23 February 2010

Short Selling.

One of the causes of the banking collapse was Hedge fund managers having the ability to bet on movements in share price, otherwise known as short selling. Following the near collapse of HBOS after shorting of its shares the government banned this method of trading banking and other vulnerable shares. In January 2009, the Government lifted the ban on short selling and as soon as they did so shares in Barclays collapsed. I blogged on this and wrote a letter to the Daily Post criticising the lifting of the ban.

We may well criticise the European institutions but at least they have the courage to take on these fund managers and traders who exploit and damage our companies value and they intend to announce a clampdown tomorrow of short selling following the recent collapse of the Euro and the Greek financial crises.

Good for them I say, they are showing Brown and Darling the way in regulating irresponsible trading. For the full story go to Euractiv

3 comments:

cynicalHighlander said...

I hope you don't mind but I have a question have you ever thought about "where does money come from".

This is serious as have you heard any politician saying anything other than "when the economy recovers" or "sustainable economic growth" I haven't because they are ignorant of my first question.

I have my own views and would like to engage in reality rather than let politicians smudge the truth due to their ignorance to gain votes.

Anonymous said...

Where does money come from?
If you're a banker, it grows on trees. The rest of us make do with earning it.

Sorry for the flippant response Cynical but let's hear your take on it.

cynicalHighlander said...

Sorry Anon as rhetorical questions imply an adverse agenda the ball is in your court to respond with a logical response not flippancy.

I asked an open question and would expect a reasonable response.