April 28, 2009
I believe that markets exist for the purpose of providing a means for companies to raise capital. Being able to borrow stock and sell it provides some balance, preventing excessively high prices. Rules need to be in place to prevent highly leaveraged specultion (both upside and downside) that is nothing more than a short term gamble (as opposed to risky investing). Therefore, short selling rules make sense.
Related to this issue, I do not understand why the SEC would allow the creation of Pro Shares highly leaveraged ETFs.