Thursday, 18 September 2008


So the FSA has banned short selling of financial sector stocks. About time too!

I’m sure many will disagree, but I’d ban short selling across the board. Why can’t we return to the days when investors invested in companies because they believed in them and expected their share price to rise? Must admit that is the only reason why I have ever invested!

If the consequence of the financial mess we are in is a return to more simple ways, I would welcome it. Banks raising money from investors (not on the wholesale market) and lending directly to individuals and businesses having checked their credit worthiness and collateral. Investors backing growth companies. Financial institutions only using instruments that their own investors might have a chance of understanding.

It will never happen, of course, but one can but dream.

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