Friday, September 19, 2008
But the government’s just outlawed it … ?
"the short sellers took the view that HBOS was going to have a funding problem next year, a view that was very probably right. By betting on the price going down, short sellers were signalling publicly what they thought about HBOS's prospects. They understood HBOS's prospects and helped the rest of the market understand them. They helped us know about a problem earlier than we would otherwise have done. Is that such a bad thing?"