Hello,
I have been reading the site for a while and thought I would join. I’m no economist, nor am I an economics student, but I have developed a keen interest in economics during the financial crisis which has been going on for a year or so now. The Austrian economic perspective seems to make more sense than other schools and I am looking forward to learning more and I hope I can, ahem, ‘contribute’ with my opinions from time to time… go easy on me though [:)].
Kind Regards
Welcome, is there anything that you want to discuss?
Hi, nice to see new people around. Don’t worry about the few callous people here. Go ahead, ask any questions you want.
Welcome aboard. I rejoice silently whenever I see someone else start to explore the Austrian School!
I suggest you find the ‘Media’ and ‘Literature’ sections of the site. Absolutely amazing. If there is a topic you know you are ignorant or need more knowledge on, a wealth of information is only a click away.
Make the most of it! [:)]
Welcome to the rationality!
Thank you all for the welcomes.
Well, off of the top of my head, the only question I have at the moment is regarding naked short selling and fraud. Would you consider naked short selling ‘fraud’?
BAH!!!
This was going to be my next topic. I was fleshing out my thoughts on hedge funds, shorting, and naked shorting and how I think it would work in AnCap society. Since I am still ‘thinking’ about it, maybe you will get answers.
My initial thought is that they would allow it because obviously they aren’t going to outlaw anything. They might argue that free markets and people would not invest in companies that short, but I don’t know how they will respond to the fact shorting can be very lucrative and a more attractive investment than the more traditional types. At this point they will probably fall into 2 camps.
Shorting is ok, and if it results in the destruction of your economy and the nullification of trillions in wealth, that they will live with the results as it is the most moral/free way to live.
Another group will see the harm that some shorting can have (see George Soros) and its industry wide catastrophic results, and attempt to find some market explanation of what would prevent it or lessen the economic shock. I predict they will have no good answers, and will either have to sacrafice their ideology or the prosperity of their society. (A big argument of Roth being that a libertarian society will be more prosperous)
Ixtellor
Ixtellor, could you elaborate on why normal shorting is bad?
I never understood why selling short would be not ok while long would be.
And can somebody explain naked short selling? My gut feeling says it would be fraud.
Another opinion I seek is on fractional reserve. When a credit swap is sold, should a seller have correct reserves. If not, is this also fraud?