The Securities and Exchange Commission and regulators around the world have cracked down on short selling. Ostensibly, it's all designed to put a bit more transparency into the market. On one hand, that makes sense because the events of the last few days have shown that the market needs confidence and trust to operate effectively. When that goes, it's a meltdown.

But short sellers are an easy target and scapegoat. They didn't cause the market's problems, that came from the liquidation of debt. And it wasn't the short sellers who encouraged the investment banks to blow out their debt to equity ratios.

Short sellers play an important role in a market that feeds off bubbles and exuberance. The short sellers are the ones who can see through the crap that some companies put out. For those with short memories, it's important to keep in mind that short sellers were the ones who exposed Enron. The short sellers are to make a buck but that can also be the ones who keep the bastards honest.

That's why Tom Petruno from the Los Angeles Times says the SEC is playing with fire. "The SEC has made a dangerous move by halting a legitimate investment strategy that's as old as tulip bulbs. We need to know that it had a very good reason for interfering in what is supposed to be a free market."