Wednesday, January 27, 2010

More Propaganda

As part of the government's continuing efforts to shape public perspectives on the economy, the SEC has proposed to limit short sales.

As Reggie Middleton notes (free registration required), this renewed effort to constrain the free actions of the stock market not only will inhibit the discovery of true equilibrium prices, but will mask activities, such as fraud, that deserve scrutiny.  The SEC is once again demonstrating, as it has done in its continuing conscious failure to prosecute Paulson, Bernanke, and Geithner, that it is just another tool of the Obama Administration's propaganda machine, rather than the independent entity that it purports to be.

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