tag:blogger.com,1999:blog-8152901575140311047.post2729799927759696528..comments2024-03-28T08:49:51.975-04:00Comments on Musings on Markets: Selling Short: The debateAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8152901575140311047.post-24380298408616129862008-09-25T11:53:00.000-04:002008-09-25T11:53:00.000-04:00We should all recognize that short selling benefit...We should all recognize that short selling benefits long buyers. In a parimutuel betting system like the equities market, the more bettors on one side of a particular bet, the worse the odds become for those bettors. By taking the opposite side, short sellers improve the odds for long buyers. Temporarily banning short selling, unfortunately, improves the odds for short sellers when the ban is lifted.<BR/>On the other hand, mark-to-market accounting bolsters the phenomenon that George Soros calls Reflexivity. As Steve Schwarzman has stated, introducing mark-to-market accounting during the beginning of the downturn has exacerbated the problem.mpchttps://www.blogger.com/profile/03260935992843595796noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-73138448335424489362008-09-20T15:26:00.000-04:002008-09-20T15:26:00.000-04:00Is it possible for the sec to punish false informa...Is it possible for the sec to punish false information being purveyed to the marketplace? It's not illegal to be, well, dumb; so what's to keep a short seller from pleading ignorance?Unknownhttps://www.blogger.com/profile/13568687135045594355noreply@blogger.com