[quote=jonnycsd]Short sellers don’t create problems, they just expose mispricing and help it correct more quickly. Shorts contribute to market efficiency. If they don’t then they quickly loose thier capital and are out of business.

As for the bad bank idea, here is a pretty simple explanation. The idea has been around for a very long time.

http://www.businessweek.com/magazine/content/09_06/b4118000045375.htm

Good luck.[/quote]

I agree to a point, but read Michael Lewis’s The End.