hey professor when you state; ``Short sellers are a very important part of the ecosystem of our financial markets,' said Angel, a professor at Georgetown's McDonough School of Business in Washington. ``The same way that lions go after a herd, they go after the weaker animals. The shorts will pick on a company where there's a legitimate controversy over its valuation.'
we would agree, to the extent those shorts are legal. As a professor, your supposed to know the difference.
Your comments are only expedient within this context.
the fact that hedge funds are spending 50 billion annually in fees for locates to broker dealers I would challenge you to define within Time Shapes of Capital, how hedge fund investors should view these expenses?
In the absence of full disclosure, hedge fund managers are using investor monies at an unprecedented rate, for absolutely no productive purpose. That is a mal investment, in case you didnt quite grasp it, 50 billion in fees, those are out of control costs shifted from productive capacity potential to speculative hubris.
somehow your being victimized by the missing information.
As one who specializes in high growth companies I can tell you with conviction, that all companies, not just weak ones are being shelled by naked short selling. Naked Short selling violates the laws governing stock issuance. here is a one year chart of the Russell 3000 a highly diversified complex that illustrates the extent of the problem;
finance.yahoo.com
The broker dealers are breaching thier fiduciary duties to investors whom they routinely recruit through advertising. Within those solicitations we've never seen any disclosure of the fact that shares placed under thier respective roofs will subsequently be loaned or subverted to a hierarchal arbitrage scheme where the investor is just a target for churn & burn.
This industry, these questions, are all being reviewed.......each passing day, we get closer to admission, that the Eliterates, have derived this scheme, to preserve for themselves the power of disposal.
All to purpose self interest. |
