The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Don’t shoot the short sellers

Hedge funds

The parallels with 1929 are growing. The equity bear market has lasted longer than any other since the Great Crash. Wall Street banks are under fire for conflicts of interest and questionable practices. And short-sellers are in the dock again, with long-only funds blaming them for exacerbating market falls and demanding regulatory action.

This time the hedge funds, always the scapegoats whenever markets fall but never when they rise, are bearing the brunt. This has happened after every recent market correction - most recently after September 11.

In 1929 US president Herbert Hoover went to war with market bears, ordering stock exchange authorities to ban short-selling in a move widely seen as helping only to deepen and prolong the 1930s' bear market.

The theory today is the same: short-sellers are evil people, they have robbed us of our money and they must be stopped. Never mind that it was the market bulls that pushed prices up to such lunatic levels again that losing money was the only outcome.

Even Axa chairman Claude Bébéar, a supposed champion of free markets and head of one of the largest institutional investors, has joined the chorus.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree