Workers unite! Smash capitalism!
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 ...
sell calls on stocks higher than their current price. Or buy puts on the stocks lower than their current price.
Or did I get that backwards?
I have no problem with selling short if you own the stock. But selling without owning or at least borrowing the stock should be a no/no. To me a NSS is the same as selling my MickeyD franchise to someone without buying it from me first, no risk to you and I loose my business. Well there is some risk if I get you in my sights, but that is impossible on WS. If I didn’t know better I would assume that NSS were invented by the Soprano family of NJ.
Then how, exactly, do they plan to make an efficient market?
I’m sick and tired of this “compassionate” conservatism. I want a change from Bush. I want real conservatism.
Heck, we haven’t even gotten to the part where Obama might be elected and he nationalizes health care.
Banking, Insurance, Healthcare.....all courtesy of your US government.
bttt
Fact A ..... Those that sell short hold down overbought (aka overpriced) stock prices.
Fact B ..... Those that cover their short positions buck up oversold (aka underpriced) stock prices.
Fact C ..... Banning “naked short selling” somewhat cools down an overabundance of short selling.
FAct D ..... Banning all short selling allows either irrational exhuberance or irrational panic to prevail because short-selling cool-down features will be gone.
The financial companies that are in trouble aren't in trouble because their shares are being sold short - naked or not - they're in trouble because their liabilities exceed their assets by huge amounts, due to failed bets and excessive leverage. The SEC's intervention will simply prolong the agony while ruining our reputation for having free and open capital markets. The Chinese market has never allowed short-selling. They are down 2/3 from the peak without ever having achieved Nasdaq-like valuations.
So am I. But it’s compassionate conservatism vs. pure Socialism.
It’s the natural order of events. I have good new and bad news.
Bad news....The sheeple have figured out that they can vote themselves largesse from the public treasury.
It’s just a matter of time till our Republic is dead.
Good news...I just saved a bunch of money on my car insurance by switching to Geico.
Have a nice day. :-)
I’m going to sleep.
Subject: SEC to temporarily ban short-selling: report
Comment: Oh, good. Can we ban the DemoRats from talking the economy down too?
This reads like something out of “Atlas Shrugged”. Weird.
Coming soon, a law that says stock and housing prices are allowed to only go up.
I agree! Naked Short-Selling is bad, and is totally unenforced. I suspect that a lot of hedge funds got very rich this week ...and... likely cost stockholders and tax payers millions (if not billions) of dollars.
You should certainly read the www article Deep Capture which is an extensive detailed article by Patrick Bryne who is the CEO of Overstock Com ...and... very knowledgeable of how the market really works and can be readily manipulated. The article is long, but highly interesting and covers NSS and other market shenanigans.
There are clearly a couple of guys that should do the perp walk. See Jim Cramer in Chapter 1 of Deep Capture and Chapter 2's Gary Weiss.
Weiss is also likely involved in:
"Speaking of strange places from which to post [Gary Weiss]: at the heart of our nation’s stock settlement system, and hence, at the heart of the issues of concern to DeepCapture, is a nearly unknown corporation called “The DTCC.”
The company provides settlement for the nation’s capital market: $1.5 quadrillion in trades are settled there every year (that is, about 30X the economic output of the entire planet). For most of its history it has largely escaped regulation: state regulators are admonished that they cannot peer inside because the DTCC is federally regulated, and the DTCC has told federal regulators it escapes their regulation due to its strange ownership structure (one former federal regulator, and one former employee of the DTCC, have both told me the feds would not know where to begin if they tried to regulate it).
In short, at the heart of the world’s economy is an enourmous black box that is regulated except on the days it’s not, and through which 30X the economic output of the world flows. It is my contention that much of Wall Street’s illegal activity is funneled through this strange entity.
The huge, nondescript building in downtown Manhattan that houses the DTCC is something of a Fort Knox. Long-gun toting guards watch the entrances, and journalists who have been inside tell me that entering it is tougher than getting into the Federal Reserve or any comparable institution.
Gary recently made a slip that revealed he was inside the offices of the DTCC, using one of their computers to post on Wikipedia about the DTCC. Given that it’s like getting into Fort Knox, I’m pretty sure that’s odd. However, it casts some light on why Gary has been stridently denying that the DTCC is dirty and that none of the issues I have been raising regarding stock market manipulation are legitimate, and why he has (according to a colleague of his in the financial press sympathetic to me) devoted 93% of his blogs to criticizing my efforts to expose the illegal Wall Street activity which, I claim, intersects within the DTCC. Just as interestingly, when given opportunity to comment, the DTCC went into cover-up mode straight out of Bizarro World."
(The above italic quote is from Chapter 2 which has numerous links in the above)
[You may also remember Gary from the big 'bru ha ha' at Wikipedia about who could edit articles in 2006 that even sucked in its founder Jimbo Wales. (Also covered in Chapter 2 of the above article.)]
In any event, the eight Chapters in the above Deep Capture by Patrick Bryne are both interesting and frightening if you really want to understand how Wall Street and the Market really work.
panic (and short)selling is most of what has driven Merrill, GSCO and MSCO into the sweet arms of bank cash deposits if they can get it
but with MSCO and Wachovia, that’s sorta like someone with a broken arm running into the arms of a pancreatic cancer victim for solace...MSCO needs a healthier big sister
I used to day trade like a SOUS bandit in my day 12 years ago or so (on ISDN, was I nuts or what?)....I never saw regular shorting as such a bogeyman...
As you look at the shares of stock that shot up fast late in the day, we find lots of them with very large short positions. Hmmm, perhaps they are very stinky companines. Yup, change the rules in the middle of the game, you’ll affect the current score. But, the current market participants will start to vanish cause they cannot figure out how to actually win.
If by 'current market participants' you mean: the hedge fund naked short sellers, the Jim Cramer's, and the Gary Weiss's, I'd rather do without them. There is no way an ordinary investor can beat the manipulators gaming the market!
You are NOT. That’s how those that are assumed to “Have” in this nation, the majority of which really can’t affort to play in the park with the big boys, the moderate income people, get SCREWED. That’s who is going to FINANCE all this, in some greater or lesser part. It hits just about everything really.
Oh now thats creepy.
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