Comments on: Time for a wider debate on shorting http://www.touchstoneblog.org.uk/2008/09/time-for-a-wider-debate-on-shorting/ Policy news and comment from the Trades Union Congress (TUC) Wed, 17 Mar 2010 03:36:10 +0100 http://wordpress.org/?v=2.8.5 hourly 1 By: Nice TUC, nasty TUC | johninnit http://www.touchstoneblog.org.uk/2008/09/time-for-a-wider-debate-on-shorting/comment-page-1/#comment-139 Nice TUC, nasty TUC | johninnit Tue, 21 Oct 2008 22:56:32 +0000 http://www.touchstoneblog.org.uk/?p=407#comment-139 [...] of a coherent critique of the current financial crisis (gulp), but then his colleagues Adam and Janet very kindly go and plug up the gap a bit themselves, at least enough to keep me safe for opinions [...] [...] of a coherent critique of the current financial crisis (gulp), but then his colleagues Adam and Janet very kindly go and plug up the gap a bit themselves, at least enough to keep me safe for opinions [...]

]]> By: TomP http://www.touchstoneblog.org.uk/2008/09/time-for-a-wider-debate-on-shorting/comment-page-1/#comment-27 TomP Tue, 30 Sep 2008 11:39:23 +0000 http://www.touchstoneblog.org.uk/?p=407#comment-27 Worth having a further look at this. I had a very quick look at academic evidence on the impact of shorting and it seems pretty inconclusive. One of the sensible arguments in favour of letting it happen is that it can help prevent prices losing touch with reality, but the three papers I found on the subject all had different views. Also all that shorting means increased trading costs. Someone has to be picking up the tab. Worth having a further look at this.

I had a very quick look at academic evidence on the impact of shorting and it seems pretty inconclusive. One of the sensible arguments in favour of letting it happen is that it can help prevent prices losing touch with reality, but the three papers I found on the subject all had different views.

Also all that shorting means increased trading costs. Someone has to be picking up the tab.

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