Andrew Hoffman, Miles Franklin, Released on 2/8/16
Ah, the “short squeeze”; i.e., the epitome of what’s wrong with Wall Street-polluted, derivative-dominated “markets.” The bane of capitalism, it allows people to “borrow” what they don’t have, for the purposes of pushing prices down. Like everything else Wall Streets’ cancerous derivative machine peddles – particularly since 1999’s elimination of Glass-Steagall – shorting is often done illegally, and always on leverage. I, for one, believe the deleterious impacts shorting has on capital formation, market volatility, and economic perception far outweighs the positive of “liquidity” and speculative alternatives. Moreover, more money is lost on “short squeezes” – particularly when catalyzed by overt or covert “intervention” – than any other market phenomenon.
Andrew (“Andy”) Hoffman, CFA joined Miles Franklin, one of America’s oldest, largest bullion dealers, in October 2011 and serves as Marketing Director. For a decade, he was a US-based buy-side and sell-side analyst, most notably as an II-ranked oil service analyst at Salomon Smith Barney from 1999 through 2005. Since 2002, his focus has been entirely on precious metals, and since 2006 has written free missives regarding gold, silver and macroeconomics. Prior to joining the company he spent five years working as an investor relations officer or consultant to numerous junior mining companies. Andy’s articles can be found on the Miles Franklin Blog, at www.milesfranklin.com.