Scrutineer: Self-fulfilling prophecy

SHORT-sellers did not cause the banking industry's problems. Bankers managed that themselves by flogging mortgages in the US at high interest rates to poorer people with dubious hopes of meeting the payments.

But short-sellers have definitely aggravated the sector's problems.

Short selling became a self-fulfilling prophecy. The hedge funds did not have to spread misleading information about HBOS and the other banks – which is illegal – to drive sha...