Posted on 09/18/2008 5:36:14 PM PDT by RKBA Democrat
The U.S. Securities and Exchange Commission intends to temporarily ban short-selling, The Wall Street Journal reported Thursday night. It's unclear if the commission has approved the move, the Journal reported.
(Excerpt) Read more at marketwatch.com ...
They been trying this for 400 years.
Expect the biggest crash since the Great Depression if this goes through — no shorts to cover, none to buy during panics. Of course, a huge phony baloney rally could happen first.
Cox finally got the wakeup call ... Being invested in failure is for Democrats ...
This is the stuff of which third world stock exchanges are made. This is proved by the fact that the UK implemented it earlier today. snicker
From your comment I infer you have a Kindergarten-level understanding of market mechanics.
Anytime the government interferes with the markets... crap happens... so if no one is shorting... they must all be long... which means more money is chasing after bad stocks... And the next hiccup or big bank that goes bust... the market will crash very, very, very hard...
“No shorts to cover, none to buy during panics.”
Yup.
Good. Now make it permanent.
Let’s just put an end to all this and let the government assign prices to the stocks
Are they going to ban puts as well? What about call writing? What about marketmakers? What about short-oriented ETF’s?
Free markets no more. We entrusted the gov’t to oversee the system without directly intervening, except where the rules are broken. So they refuse to intervene and enforce the rules that are there to protect us, and the end result is a market OWNED by the gov’t.
It’s not hyperbolic to describe this as the end of capitalism. Hamilton and Jefferson, two natural enemies, would agree that this is not the nation they founded.
Without a free market, we are Argentina. If markets are not free to fail, then they are not free!
The market is not just down but it is on the ground getting kicked.
And there is little outrage that A Republican president is nationalizing industry.
ALL short selling? Disgusting. Move to China for more financial freedom.
Bad move is right.
Why not? The Fed is a VC, a bank of last resort, and your parents all in one. This crap plays right into Obama's hands.
HOW THE HECK AM I SUPPOSED TO MAKE MONEY IN THIS MARKET THEN?
*********************************************************
The fed kicked me in the teeth on 3 occasions ... wed/thurs/fri going into options expiration ,,, banning short seling shouldn’t be done ,,, just ensure through fines that brokers have the shares on hand and borrowable to short legally ... the problem is in naked shorts and the huge positions that some companies such as GS take knowing that their positions aren’t legal ,,, but their illegal moves are ignored by regulators... as for me I’m buying long in companies with big short positions knowing that no new short positions can be opened which will presumably bump prices as eventually the rising overall market will raise even the “dogs” that have such high short positions against them...
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.