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Pissed as I have been for most of this afternoon and evening, I have retained the mental capacity to register a phone call this evening from a colleague I've been working with on community land trusts for the past three years telling me that we are now properly registered as an Industrial and Provident Society known as Oxfordshire CLT Limited.

For some reason I feel a little like a new mother must feel before the gas has worn off! We now have this little legal entity, ready and waiting for any of you Oxfordshire landowners and local authorities to do business with. The best present I could have asked for at Christmas!

Here's another thing about the Conservative party and their tenuous claimed link with the Co-operative Movement. It is no coincidence that the international rainbow flag for peace is also the international co-operative movement's flag. Nor that it was the Co-operative Womens' Guild that instituted the idea of wearing white poppies to promote peace instead of red ones that commemorated the "glorious dead". It is axiomatic that the Co-operative Movement strives for peace - the very phrase "Peace and Co-operation" encapsulates the ethos.

So, will Dave be wearing red, for the more traditionally Conservative Remembrance of War, or white for the traditional Co-operative Promotion of Peace? I think we can probably predict pretty well which it will be, don't you?

I've often thought how extraordinary a person must be to be able to feel competent to "run" a country of tens of millions of people. Of course, personally, I don't believe anyone can. The cult of leadership is unhealthy for society. The notion that one person is somehow supremely capable above all the rest of us to make decisions affecting us all as comprehensively as the tentacles of government reach into our lives is repugnant to me.

But clearly blogging John Prescott buys in to this cult of leadership:

So, wait a second; we have a former postie in charge of a £100bn plus budget, including, ultimately, decisions of life and death importance and he's still lacking a certain "je ne sais quois". We have a trained lawyer who's held more of the great offices of state, and cabinet posts traditionally associated with the senior minister - Lord Chancellor, Lord Privy Seal, Leader of the House of Commons, Secretary of State for Foreign and Commonwealth Affairs, Secretary of State for the Home Department - and still hasn't the "skills and experience"?

Of course we can all see that the incumbent whom Prescott holds in such esteem has been promoted beyond the level of his competence anyway. But the idea that there is some step change in skills and experience between Prime Minister and other ministers is just bonkers. Don't get me wrong, I hate the man with a passion, and this is a backhanded complement at best, but at least Tony Blair had the skills and helpers to spin his way through, to sound convincing and to persuade people, but he had no practical ministerial experience at all.

Of course, nobody has such skills, and perhaps especially those who have surrounded themselves in the political system for most of their adult lives. As the concentration of power into the hands of the Prime Minister in the UK has continued apace ever since Walpole was first in office so the world has become immeasurably more complex and fast moving, making it all the more ridiculous to expect one person to be an adequate representative for so many of us in so many aspects of governance and diplomacy. I daresay that, when the House of Lords in 1741 decried the idea that any minister should have primacy over others' departments, the daily work of those departments probably could have been handled by one person. Now, it is completely impossible and we should ditch the whole edifice.

There's been much talk, most of it at least tacitly approving, of the restrictions or bans imposed in the past few days on so called "short selling" company shares. Most of you probably don't know that my first career, straight out of school., was as a trader on the stock exchange, followed by stints in several stock-broker firms mostly in private client advice and fund management, before I got into IT - which was as a result of my city experience. That's all a bit apropos of nothing really. After all, you'd be right in thinking that if I had been successful in this first career I might now be funding a think tank or something. But it gives a little background to my knowledge of this issue.

Short sellers, per se, are not the problem here it seems to me. Indeed the stock exchange relies on players prepared to go short - that's what market makers are effectively obliged to be prepared to do when they make a price.

Short selling is also an important way of the market getting the information it needs to make accurate value assessments. Longer term shareholders may have more emotional reasons than pure profit to resist pressure. Even perhaps just inertia. Sometimes even tax considerations. Short selling is also a way in which holders of stock can increase their returns on the stock by renting it to the short sellers. Little risk to them.

In my day, you could short sell, effectively, for fourteen working days. The London Stock Exchange used to work on a fortnightly settlement cycle. So for example a deal you do tomorrow, if tomorrow was a new cycle, would not need to be settled until the Monday in the middle of the next fortnightly cycle. If you went short tomorrow, you could, potentially, buy back for cash settlement (a special, premium service for urgent trades that was settled the next trading day) as late as the Thursday night before settlement day - so giving you fourteen trading days to see the stock fall and buy it back.

Nowadays everything is more or less "cash settlement" with positions settled the next working day - hence the self limiting requirement to borrow stock to deliver on short positions.

No, there's nothing wrong with short selling. Once you realize that the secondary market is stocks and shares is a big gambling den in any case, how can you outlaw one type of gambler and not another.

The real problem, it seems to me, with the run on HBOS shares for example, blamed on "short sellers", is the idea that some market players, hedge funds were cited, were "hunting in packs". Now, it is conceivable that even if there's nothing wrong with the fundamental financial health of a company, such a "pack" could be strong enough to provoke a run on a stock simply by weight of numbers. This, however, would be market manipulation. It would be legal, ethical, and even just plain sensible, to suspend trading in a particular share, or even in the whole market, if there was such illegal manipulation going on, or suspected. If a suspension was unwarranted, there should still be the equivalent of a "stewards inquiry" to determine if there was manipulation, a cartel operating, and if so how to punish them.

If the fundamentals were bad for HBOS, and actually I suspect that they were worse than the financial watchdogs have been saying - otherwise opening their books would have been enough to disprove the rumours - then the short sellers simply administered the coup de grace a bit more humanely perhaps than dragging it out for weeks more uncertainty.

I very much suspect that some hedge funds and private equity fund managers do aggressively hunt in packs occasionally. The fact that the secondary market is a gambling den makes it likely. That needs investigating. Market procedures for suspending trading in a market in which the true value of a company has become impossible to assess immediately need looking at. But having a go at the short sellers, who could, after all, just be the people maintaining liquidity in a particular market, is simply creating a scape-goat. The authorities should be ashamed.

Thanks to James Robertson for pointing me to this site in response to a call for fresh thinking on how to fund the EU after 2008. I'll no doubt return to this in the future but for now just have a look. How we can finance the EU and get a dividend back.

Technorati Tags: EU, monetary reform