posted on Oct, 21 2008 @ 02:10 PM
i don't think it is required to push down prices or anything else and it isn't betting on stocks going down, it's selling something you don't
have, especially the case in naked short trading.
the people who are claiming it is a natural function of the market are the ones that made a fortune selling shares in companies just before rumors
suppress the value of those shares.
it's a shadey enough practice in good times but at the moment it would be suicidal. and yes, traders are willing to lend these shares to short
sellers, but mostly because the traders loaning shares have no vested interest in the value of the shares they are lending.
they're lent from pension companies etc. that expect an increase for investors of about 6% per annum, as far as they are concerned if the value of
the investment is 8% in the secound 1/4 then they can afford to have the values drop by 2%, collect the lending fee from the short seller and a
bonus/commission from the investors.