As the FT says, this very obviously raises concerns about the effectiveness of new European rules aimed at forcing disclosure of those who are shorting markets.
But the reality is that what this really proves is exactly why we need publicly accessible registers of the beneficial ownership of all companies around the world, including in the Cayman Islands, who are holding out against them. This activity distorted markets. It undermined fair competition. The outcome is widely considered by many to be harmful. And none of it would have been possible if there had been an open and level playing field on which all operated, including basic data on who was undertaking trades, which is the pre-requisite of fair competition.
Harmful? Investors prick an investment bubble? An over-hyped and highly likely to go bust very soon bubble? This is harmful, distorts markets? Undermines fair competition?
It’s almost as if Robert Shiller didn’t get his Nobel for in part pointing out that it’s the very ability to bet short that helps to prick investment bubbles, isn’t it?
Is there any beginning to this man’s knowledge of economics?