On Wed, Sep 23, 2009 at 3:48 PM, c b <[email protected]> wrote: > There has been insufficient appreciation of the positive role that > shorters played in this story. They were the ones that effectively brought > the speculative party to an end. By dumping bonds and buying up credit > default swaps on the sick financial giants' debt, in addition to shorting > their stock, the shorters made it impossible for these companies to > continue their reckless ways. > > Of course the shorters were not trying to perform a public service. They > were trying to make money. However, in pursuing profits, they did what the > Fed failed to do: they brought the dangerous inflation of a housing bubble > to an end.
It is a bit surprising to see Dean Baker write in praise of speculators. That said, how does Baker's theory explain the mysterious absence of short-sellers earlier in the bubble cycle? In other words, how did these insightful people allow the bubble to inflate to such monstrous proportions in the first place? -raghu. -- "As a matter of fact, no, I don't have a life." _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
