Richard Murphy speaks:
And yet it’s attempt to raise cash in the market has been severely impeded by the wholly irresponsible action of short sellers in the market – mainly hedge funds. They have ‘borrowed’ shares from people like pension funds, then sold it, seen the price fall under pressure of a net selling market and then bought it back before returning it with a fee to those from whom they borrowed it. In so doing they seek to undermine the main function the stock market has, namely the creation of liquidity by the raising of cash for businesses that need it.
He entirely misses the point that short selling increases liquidity in the stock market.