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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: laurin_de who wrote (9771)	5/25/2005 4:25:50 AM
From: Crossy	Respond to of 37387

Laurin, I think there'S a misperception. The way I read it, Germany's currently ruling polticians wanted to curb hedge funds INFLUENCE on the companies, not the shortselling, commonly associated with the hedgies (which is only very rarely happening in reality. Usually they do spread trades - go long in one item and go short in another. Recently some funds literally demanded management of targeted companies to "improve the economic viability" of their operations. You knowthe "EVA" analysis type of stuff... Financial theory tells us that shortselling isn't much different than ordinary buys and sells. In fact it is even providing trading liquidity. This argument against shorting has been proven wrong by academia repeatedly. Fact is that the US, the UK and other stockmarkets in developed industrial areas that posted a tremendous performance over the mid to long term had allowed short selling since early on. I'm not a fan of shortselling either but this is my personal decision and I see that it can help implementing sophisticated derivative strategies. What's the answer in the fields of economic policy is an issue that in a democracy is answered in 2 layers. The means and ends of eocnomic policy (especialyl the fiscal side) are subject to the outcomes of period public elections on the state/country level. However there's another layer and the guys on the top often forget them - it's the empricial performance of the policies they are pursuing.. You know these statistics.. growth, inflation, unemployment etc.. If the numbers don't match "public acceptance" doesn't matter much either. rgrds CROSSY