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 ...
Good. Great move.
So who will buy when the market is crashing?
I thought it was only naked shorts which I also thought were already banned, but not enforced?
bttt
I said: "Can we ban the DemoRats from talking the economy down too?", not "a market".
Shorting is trading, not investing. Shorting is taking capital out of the markets, investing is putting it in. Maybe the feds want money into and not out of the market.
Frankly, I prefer the feds lay off the markets including never using taxpayer money to affect the markets. The feds should only be worried about crimes of fraud and theft in the markets and let the market move where it may.
Nonsense. It is a government intervention in a Free Market.
"If it's too big to be allowed to fail, it's too big to be allowed to exist in the first place."
Coming to a politician near you.
Okay, how do you talk up an economy where the government is natioalizing industry?
“Okay, how do you talk up an economy where the government is natioalizing industry?”
Maybe the FED will call Pres. Chavez down in Venezuala to give them some pointers.
The fact that the Chinese have never allowed short-selling sure seems to have helped their stock market. (sarcasm)
that’s what it thought too. I am very well versed on NSS and it is a huge problem and in many runs companies into the ground.
The non enforcement of the T -3 and the stock borrow program has made so much trouble and trilions being taken from the average shareholder. I suspect alot of this has to do with cleaning up the markets so there is no more NSS.
I was under the impression that the intent here is eliminating naked shorts, not all shorts, but what do I know?
Its unclear but it sounds like they are banning the already illegal Naked Shorting.
Why bad? If some of the wise guy traders are doing it to make a fast buck artificially driving down stocks-—ban the stupid practice.
This appears to be a complete ban. This could mean shorts will have to be closed out, puts will have to be exercised or sold, etc. Could be the beginning of a massive rally, followed by the kind of crash experienced by China, which has never allowed short-selling. Goodbye, Dow 10,000; hello, Dow 5,000.
I wish that people would make up their minds already...You can’t have it both ways. Is America Socialist or Capitalist? In public policy we are about 80-20 Capitalist to Socialist right now.
Public policy towards commerical and investment banks is a mixed bag.
If we are for free markets, than Gubmint has to leave them alone without regulations and let them compete on a global scale...but that means no Gubmint bailouts. Don’t come crying to the taxpayers. If you thought it was a good idea to package the loans to homeless and unemployed people that libs insisted you make into a CDO and try to sell it...too bad.
If we are for Socialism, and taxpayers will be on the hook to bail you out, than Gubmint has the right and the duty to regulate you up to your eyeballs whether you like it or not. Their money, their rules. (really our money, our rules)
Which is it?
bttt
So I can’t sell my next-door-neighbor’s house to the guy that’s been asking, hoping that the housing market will crash and I can buy it back cheaper before my neighbor notices?
:-)
I don’t know if this is a good or bad thing. I have the opinion that eliminating the uptick rule on short sales was a mistake, and that allowing a short sale when the person selling hasn’t already borrowed the stock was a bad thing, I’m not sure I’d completely ban them.
However, if this is a VERY TEMPORARY move while they put in place a strong enforcement mechanism to stop selling stock if you haven’t borrowed it yet, then maybe it makes sense.
People can still buy and sell puts and calls, so you can still make money betting that a stock will go down.
You just can’t actually force sales of the stock at lower prices on the market, so you won’t be able to directly move the stock lower unless you OWN the stock and want to unload it at a loss.
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