Over at the Daily Shocker, they lay out the truth over McCain's latest fraudulent claim on the economy:
McCain was quoted as saying:
"The primary regulator of Wall Street, the Securities and Exchange Commission kept in place trading rules that let speculators and hedge funds turn our markets into a casino," McCain is to say. "They allowed naked short selling — which simply means that you can sell stock without ever owning it. They eliminated last year the uptick rule that has protected investors for 70 years. Speculators pounded the shares of even good companies into the ground."
Part of the analysis:
Short selling doesn’t affect good solid companies because its too risky to take a short on them. If too many people short a good company, it is usually trending long, which eventually sends the shorts into a short squeeze, which only drives the price of the stock even higher. If a company is destroyed by short sellers, it’s because the company had no earnings to back up its stock price and they more or less deserved it.
http://www.dailyshocker.com/...
This is just a series of statements that McCain should really be called out on. While there has been some abuse of short selling in the past, it is not even close to being responsible for the housing market crash or the mortgage crisis which is causing the Dow to freefall. He is merely trying to divert attention away from the real culprits: the CEOs of these large investment banks that gave loans to anyone and everyone in an attempt to inflate their "assets" and the deregulation introduced by his own top economic advisor (Phil Gramm) which allowed these investment banks to sell faulty loans off to unsuspecting investors in the form of CDOs.