May 6, 2011
SEC,
Public involvement (source of capital) in a business should serve two purposes: 1) To provide the opportunity for the business to expand beyond its own means or borrowing potential and 2) To give consumers the opportunity to provide insight, direction of the business product or service and a method of accountability for their investment.
Apparently, various literature suggests that banning short selling altogether would not temper or moderate the market. Many other very successful investors like Warren Buffet are proponents of short selling, indicating that it has the effect of warning against overpricing and hedges bullishness. On the former, fine. But on the latter, there is no one that could convince me the market should be policing itself. The market is out to make money and that usually entails the exploitation of pre-existing regulation.
Short Selling is just another complex financial mechanism which provides fertile ground for exploitation. It's played like a kids game, only the stakes are enormously high. Is this what we want? Or should we take another look at our priorities? How will Capitalism check itself? Why was the market started in the first place? What purpose should the marketplace serve? The real engine of America's progress is the success and innovation of its businesses. We want them to grow, grow steadily and not grow at others expense. Growth is already uncertain enough. Let's get rid of these...silly games.
V/r,
J. R. McGee