What type of quantitative information on how much short selling hedge funds contributed to the global financial crisis

I'm first year econ student so I don't know much about financial markets yet. I'm writing an essay about hedge funds (short selling hedge funds). Please share what you know on the type of quantitative information on how much short selling hedge funds contributed to the global financial crisis I could find to put in my essay

Thanks
Daniel

 
Best Response

Whoever you're econ teach is doesn't know his head from his ass.

Short-selling is a way of keeping the markets efficient. Without it, we wouldn't know who the losers are.

The 'Global Financial Crisis' is such a broad phrase and it's a lot more complex and convoluted than this question suggests. Hedge funds have nothing to do with how in debt countries are in the Euro Zone. Hedge funds also did not 'cause' the housing crisis. There is plenty of blame to go around, but I think most would agree that the top 3 entities to blame were:

1) Government 2) Ratings Agencies 3) US Home Owners

And the list goes on. It's a very complex event and Hedge Funds are WAY down of the list of entities to blame.

If you'd like an explanation on the Housing Crisis, I would suggest 'Engineering the Financial Crisis' by Friedman. If you'd like an explanation of the Euro Crisis, just pay attention to the news. It's happening right in front of our eyes.

 

Youtube: "Khan Academy, Short Sellers."

He has a video which illustrates how short-sellers diminish market volatility.

The difference between successful people and others is largely a habit - a controlled habit of doing every task better, faster and more efficiently.
 

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