- Joined
- 6/5/07
- Messages
- 348
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- 26
By Michael Tsang
Oct. 2 (Bloomberg) -- One of the stock market's latest villains is a 32-year-old self-described ``math geek'' from a Minneapolis suburb who won't move to Wall Street unless they let him wear flip-flops.
Matthew Paschke, who manages the $165 million Grizzly Short Fund at the Leuthold Group,
says short sellers like him have become scapegoats for the financial crisis that's wiped out $20 trillion from stocks and brought down Bear Stearns Cos. and Lehman Brothers Holdings Inc.
...more: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4JOcJNafRyQ
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Once again, short selling isn't the problem, unless it is done out of proportion to the float; that is, without having to borrow shares (naked-shorting). Market-makers in stock (of course) and equity options can naked-short as a matter of business course, but they are exchange members and are therefore accountable to the marketplace and will be penalized for abusing the exemption.
Is it a little tough to do business as usual? Get used to it: it's tough for everyone. It's a crisis.
Oct. 2 (Bloomberg) -- One of the stock market's latest villains is a 32-year-old self-described ``math geek'' from a Minneapolis suburb who won't move to Wall Street unless they let him wear flip-flops.
Matthew Paschke, who manages the $165 million Grizzly Short Fund at the Leuthold Group,
says short sellers like him have become scapegoats for the financial crisis that's wiped out $20 trillion from stocks and brought down Bear Stearns Cos. and Lehman Brothers Holdings Inc.
...more: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4JOcJNafRyQ
***
Once again, short selling isn't the problem, unless it is done out of proportion to the float; that is, without having to borrow shares (naked-shorting). Market-makers in stock (of course) and equity options can naked-short as a matter of business course, but they are exchange members and are therefore accountable to the marketplace and will be penalized for abusing the exemption.
Is it a little tough to do business as usual? Get used to it: it's tough for everyone. It's a crisis.