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Kaoboy Musings
Re: Investing-Meme Stocks & The Importance of Shorting.
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Re: Investing-Meme Stocks & The Importance of Shorting.

For those cheering the WSB “short assault” mob, be careful what you wish for.

Michael Kao's avatar
Michael Kao
Jan 30, 2021
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Kaoboy Musings
Kaoboy Musings
Re: Investing-Meme Stocks & The Importance of Shorting.
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When short- selling was banned in 2008, bona fide hedgers could no longer short equity against their portfolios.

These portfolios could be comprised of distressed bonds, convertibles, options, or other equities. Inability to hedge then forces long liquidation of LESS LIQUID assets, like credit.

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