By John Tamny of Forbes
“Without short sellers, ‘there would be no one to criticize and restrain the false optimism that always leads to disaster.’” ~ Bernard Baruch
Amid the difficult markets of recent vintage the role of the short seller has once again come into question. According to some, short sellers hastened the demise of firms such as Bear Stearns and Lehman Brothers. When the collateral damage of both firms’ decline was taken into account, seemingly easy solutions were naturally trotted out by regulators.
