It’s not the short sellers only. It’s much more that ruined the US economy and the banking system.
- Bankers who gambled at the wallstreet casino ignoring that financial markets should represent real values.
- You, me and John Doe. Most US citizens spent too much money on things they could not afford.
- The world who believed in the “strong” US economy ignoring the facts. If you take a look on the US balance sheet we have not only the strongest budget deficit, but also the strongest trade deficit.
- The FED which ignored and still ignores the tumble of the dollar. Instead of giving credit to banks they should give it to the real economy. Why can’t your company get a 0% loan from the FED but the bank does ?
CDSs were so unregulated that traders could buy insurance on other peoples' companies, and they could buy multiple policies.
So now shorting a stock not only reaps you the rewards from the trade, but then you can collect on the CDSs policies on companies that you cause to fail!
It's a real "win-win"! ;-(
Because those who are in control, are not really interested in improving the USA, but in bringing it down. Why else would they continue doing what has been proven not to work?
The tool which allowed the short selling with impunity is the concept of willful delusion by the sellers that they had their positions covered with CREDIT DEFAULT SWAPS.This emboldened them to hedge 40 to 50 to 100:1 because if the bet went opposit of their 'bet', they lost nothing. Now, the gig is up and we all take it up the rectum. Not just us but our children and our grandchildren. I say what I say soberly. These people in government and in banking who allowed this to happen should be shot for treason.