Letters

THE article (BusinessDay, 24/9) on short-selling of shares was good in as far as it went, but it did not explain how if affects most Australians.

It just said short-sellers such as hedge funds get the shares to sell on loan from superannuation funds and other institutions.

Yet I have not seen one superannuation fund give details on this activity in their annual accounts.

Surely members, which includes most Australians, should be told what income the fund derives from this activity and what are the

risks.

Specifically we should be told :

? How are shares loaned out shown in the annual accounts? Are they included in assets as shares, a fixed-interest loan, or a derivative?

? How do loaned shares show in asset allocations? This affects members as they choose what type of fund to hold their super.

? What shares are loaned out at balance date?

? What is the income from this activity? Is it just a cash payment for the loan or does the fund share in price movements during the loan period?

? What security is provided for the loan?

? What happens if the hedge fund cannot repay the loan?

You have several journalists writing on superannuation and finance.

Perhaps one of them could explain this important matter to us.

It is our money and we should know what are the risks and returns.

Graham Davies, North Balwyn

Check with family first

SHORT-SELLING has been truly exposed as a social hazard that threatens the world's financial stability.

The consequences for poorer nations are disastrous.

If Mr Aldworth and his like-minded investment gurus wish to bet their own savings and homes on gambles such as these they are welcome to do so - with, of course, the provision that they check

first with their partners and children.

However, to use the life savings of hapless workers, who at any moment cannot be sure who is enjoying merry sport with their superannuation etcetera, is quite outrageous.

Roger Green, Ferntree GullyPity poor Buffett

I HAVE been so inspired by the Wall Street bail-outs that I have decided to follow the example of the US Treasury.

I recently read that Warren Buffett is now only the world's second-richest man, not the richest.

I think we should hold a series of benefit concerts and a telethon around the world, with all proceeds going to Mr Buffett, to restore him to the No.1 position.

Let's make this happen before it's too late.

Gary Rabin, New York

Long, dark night

SO US politicians have blinked. Enter, all ye citizens, the long, dark, economic night.

Kevin Rugg, Beaumaris

Joyous discovery?

FINANCIAL Services editor Eric Johnston wrote (BusinessDay, 22/9) that the short-selling ban "could effectively shut down options and derivatives trading".

Would this be serendipity, an unexpected joyous discovery? Or, perhaps synergy, where a combination produces a greater benefit than the sum of each?

Certainly, for those ordinary mugs who have no say in where their compulsory superannuation goes in the ASX casino, that possibility must be one great big pleasure.

Don Hampshire, Sunbury