Money Stuff – Car Shorts

Especially, though, it is hard because everyone hates you? I have nothing intelligent to say about this. It seems to me that selling stock is as legitimate as buying it, that betting that prices will go down is as legitimate as betting that they’ll go up, that for prices to be accurate and capital allocation to be efficient you need to let skeptics express their opinions, and that anyway a lot of actual short selling is for helpful market-plumbing reasons (market making, hedging options, etc.) rather than big negative bets against companies. Lots of people reading this are like “duh yes of course.” Lots of other people are like “no it is mean to root against companies and fraud to sell stock you don’t own.” (One of those people is the richest man in the world, who got that way in part by selling cars he hadn’t built.)

Emphasis mine.

Burn 🔥.

Find Matt Levine at Bloomberg.