In short, not very. One angle that has been pored over and amplified by many in the press is the idea that Reddit users are angry about 2008. We’ve already noted above that the “rebellion” started as a value investing thesis, but some posts on the website do point to a generalised anger about bailouts in 2008 and a re-run of “Occupy Wall Street”. Yet hedge funds and short-sellers are the wrong target for this rage against “too big to fail”.
As Michael Lewis’s book, The Big Short (and the film of the same name) explain, short-sellers were among the few institutions to spot and warn of the risks in the housing market in 2008. Moreover, short-sellers were not bailed out at any point during the financial crisis – it was the banks who were saved (which was arguably the right thing to do at the time, though you can certainly argue with the way it was done and the relative lack of consequences for those who were in charge).
So what good do short-sellers do? In return for taking the risk of uncapped losses, they’ve helped to uncover frauds ranging from Enron in 2001 to Wirecard last year (those who think this should be the job of the authorities should note that the German regulator tried to have Financial Times journalists arrested for pursuing the latter story). But what of the “good, honest” companies that short-sellers have bankrupted? I’ve tried to uncover even one example of this, yet while lots of people clearly feel very hostile towards short-sellers (just try defending them on Twitter), they can’t point to any specifics to back up their views – so email editor@moneyweek.com if you have an example.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Lloyds refunds customers £2 million using chargeback – here’s how it worksMore than 40,000 Lloyds customers got their money back when goods didn’t arrive as described, using the chargeback scheme. We look at how chargeback works and ways to protect yourself when shopping online.
-
Gender pension gap rises to £113,000 – how to fill the shortfall and boost your pensionThe gender pension gap is growing, says Scottish Widows, with a third of women facing poverty in retirement
-
Who is Jared Isaacman, SpaceX astronaut and Trump's pick as NASA chief?Jared Isaacman is a close ally of Elon Musk and the first non-professional astronaut to walk in space. Now, he is in charge of NASA
-
Three solid British stocks going cheapOpinion Ian Lance and Nick Purves, fund managers at Temple Bar Investment Trust, highlight three British stocks with strong cash flows and robust balance sheets
-
Is now a good time to invest in Barclays?Barclays' profit growth is healthy, and the stock is cheap compared with its rivals
-
Profit from other investors’ trades with CME GroupCME Group is one of the world’s largest exchanges, which gives it a significant competitive advantage
-
Key lessons from the MoneyWeek Wealth Summit 2025: focus on safety, value and growthOur annual MoneyWeek Wealth Summit featured a wide array of experts and ideas, and celebrated 25 years of MoneyWeek
-
Defeat into victory: the key to Next CEO Simon Wolfson's successOpinion Next CEO Simon Wolfson claims he owes his success to a book on military strategy in World War II. What lessons does it hold, and how did he apply them to Next?
-
Aircraft leasing companies can lift investors' portfoliosThe aircraft leasing business is a safer way to cash in on air travel and its booming demand. David Prosser explains how it works and how to access it
-
8 of the best houses for sale with fishing rightsThe best houses for sale with fishing rights – from a Georgian property on the banks of the River Derwent, County Durham, to a restored mill house in Marlborough with fishing rights on the River Kennet
