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Should Short-Selling Be Restricted?

I criticized Barack Obama's call to go after market manipulators like those rumored to have brought down Bear Stearns last month. My contention was that stricter enforcement could have a chilling effect on the dispersal of good information. But regulators seem to be taking the issue seriously. In congressional testimony earlier this month, S.E.C. boss Chris Cox strongly implied that the agency was looking into the Bear matter.

And Knowledge @ Wharton now points us to some recent research which argues that "bear raids" can cause real economic, not just financial, harm ...

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