OMG! Short selling! It\’s an outrage!
Twit. It adds liquidity to the market which is something we want. It\’s also hardly new, been around for donkey\’s years. Further:
The scale of speculation is eye-poppingly huge. Since Hedgestock, hedge funds have become ever more important. The worldwide industry manages £1 trillion of assets and a leading hedge fund manager told me they are only a third into their growth cycle – another £2 trillion is to come.
Is that large?
When they were small you could argue they were a justifiable irritant, challenging and punishing governments and companies alike, who had got themselves into unsustainable financial positions. But now they are becoming the mainstream, degrading the operation of capitalism, turning it into a casino, reducing people\’s lives to the chips.
The world\’s financial assets reached a record $140 trillion worth of stocks, bonds and other financial assets as of 2005, more than three times as large as the total worldwide GDP, according to a study by McKinsey & Co.,
Well under 1% of global financial assets. No, I think we\’ll categorise that as small shall we?