Stock Shorting

Shorting a stock is gambling. It is like what is done in Las Vegas. One doesn’t have to actually invest in the stock of a company, you just bet that the value of the stock is going to go down.

This sort of casino-type activity is what got us into the situation we are in today.

It is not difficult to understand. If you think that a company is not going to prosper in the future, then you sell the shares that you own. And if you think a company is well managed and will prosper in the future, then you invest in the company by buying shares of common stock in that company.

It also is important that people not be allowed to borrow a great deal of money just to buy stock. This leads to excessive speculation. So the rules regarding borrowing need to be changed so that no more than 25% of the money that you invest can be borrowed, i.e. 75% of the money that you use to buy stocks in a company has to be your own.

The tax system should be changed so that if you buy shares in a company and sell them in less than 12 months you pay a heavy penalty to the tax collector.
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