What does it mean to sell something short? I always thought it meant that you just didn’t appreciate the value of something. But on Wall Street, there are two types of bet, one expecting eventual appreciation of the value – a long position – and one expecting the value of the investment to fall – a short position. A short position means you will borrow the security from someone and sell it, and then buy it back later, hoping in the meantime that the stock as fallen. Indeed, it is “selling short” instead of “buying long.”
Of course, we remember the $550 million penalty slapped on the wrists of Goldman-Sachs for their recent double-dealing, where
“hedge fund Paulson & Co. helped pick the underlying securities and bet against the investment vehicles.”
Basically, a short position means you are betting against the company or fund. If you have any control of the company or fund, this is highly improper because you can easily undermine the value by making bad decisions, something no one expects you to do, and thus the penalty for Goldman Sachs.
But this is indeed exactly the position the Republicans find themselves. If they can make the economy stay really bad through the election, they may actually gain power by making the Democratic majority and Obama/Pelosi/Reed look terrible. In their view, they find it advantageous to bet against America, and to do all they can to make sure we stay in this recession, or better yet, if we can double-dip, that would make them even happier.
What do they do?
Well, they vote as a block against financial reforms designed to help keep our economy stable. They want everything unstable, for consumers to be ripped off by credit-card companies and unscrupulous banking practices. They want the consumer down and to stay down. Another meltdown, in fact, would be great right now.
Secondly, they voted against the extension of unemployment insurance benefits. Of course, they know that the vast majority of people out of work right now are in that predicament only because of the economic melt-down that started in 2008 and has only barely reached the bottom. It has nothing to do with the idea that these workers want to be out of work. They don’t, they want to get bak to work, as as soon as possible.
Unemployment insurance payments is one of the most effective ways to boost the economy, since these families will immediately spend this money for their basic needs and outstanding bills. As each person is paid, they pay others and that boosts the economy like nothing else.
Except for one thing. You see, the condition of our economy is largely what we say it is. When everyone says it is bad and no one is spending money, no one spends money and it is bad alright. However, as people start to feel a little better, they start to spend more, and that money circulates and gets the whole thing going again. But if we keep saying it is absolutely terrible, it will stay that way even longer.
So I doubt you will hear the Republicans start saying the economy is looking brighter, even if it is. They want it to be bad. They want the Democrats to fail, and they want America to fail. They are betting against American and they are selling it short.
Such a bet isn’t illegal, but it should be. Our representatives should be working for America to succeed, not to fail. Those who are betting against America must be removed from office before they ruin our economy even more.