Replies to post #221669 on Spongetech Delivery Systems Inc (fka SPNGQ)

[janice shell]

If there wasn't a problem with short selling, there never would have been a halt to it.

It was just the pressure from hedge funds that got the halt removed.

Not at all. The decision was based on analysis of the results. Even Cox admitted that it had been a mistake that prolonged the crisis.

[janice shell]

When Lehman Bros started getting hurt by the MBS (mortgage-backed securities) position and the CDS (credit default swaps) they owned, short sellers attacked them in a big way.

So?? That's why shorting EXISTS. You think a company is wildly overpriced, has fundamental problems? You short it.

That's the POINT. In the scenario you describe, the shorts were punished for having been RIGHT.