By MAR
For those not familiar with the term, "Short Selling "; it means betting against the future success of a company. To sell short you would borrow and sell shares of a company, you believe is doomed, at the present value with the hope that you will buy and return these shares in the future when the price is lower. Your profit will be the difference between the present price and the future lower price. The more beaten the company becomes, the more profitable a short seller is. Selling short may work for some people monetarily, but it will always leave a bitter taste in their mouths. For those, who sell short, their smiles are, by definition, drawn from the misery of the majority who believed in the company and it s ability to recover.
The thought of short selling came to me as I watched many politicians and news anchors react to the actions of the government. To them it appears like an early start for the campaign of 2010. They are heavily investing in the failure of the current administration and its attempts to stimulate the economy or get a health care reform passed. They have formed a solid coalition against the stimulus package before its passage. After its passage without their support, they tied their own political future to its failure and the continuation of gloom and doom in the country. They are not willing to give any credit for it in starting to turn the economy around or at least soften the pace of decline. Many claim that they object based on principles. I hope that is true, but the track record over the past eight years contradicts that. Under any circumstances, I only see, short selling the US, as a faulty principle rooted in Machiavellianism where all means to reach the target are justified.
The short selling continues with the current debate on health care overhaul. It seems that some have just made their mind to not allow any progress on the issue to take place no matter what the proposal on the table really is. There is room for improvement on all the current proposals for health care, but no improvement will be good enough when they see a chance to bring down the stocks of the US in hopes of inheriting in order to make a profit from the short sale.
I would like to end by noting that, although I may not be a Wall Street guru or a stock broker, I know few facts about Short Selling. It is never a safe bet, especially when you are targeting a strong nation with a great track record of coming back. The gain from short selling is limited, but the potential for loss is not. Short sellers may not always be able to cover their short position in time. So, I recommend that you reassess your actions, for come election time, many will not forget that you made our continued misery a condition for your triumph.
MAR, A scientist and Independent Thinker http://www.homeforthoughts.com
Source:www.isnare.com |
