They could have reinstated the uptick rule, and disclosure of short positions to the SEC may be a good thing, but a blanket ban on selling short particular stocks was ridiculous. It's no wonder that it did not work.
To: PAR35; TigerLikesRooster; bamahead; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; ...
|
The Money, Banking, and Financial Markets Ping List. "Money, not morality, is the principle commerce of civilized nations." Thomas Jefferson FR Keywords: moneylist, bankinglist, financelist Please tag all relevant threads with the aforementioned keywords. This can be a very high-volume ping list at times. Ping list jointly pinged by rabscuttle385 and TigerLikesRooster. To join the ping list: FReepmail rabscuttle385 with the subject line add moneylist. (Stop getting pings by sending the subject line drop moneylist.) |
|
2 posted on
10/09/2008 8:37:43 AM PDT by
rabscuttle385
(Baldwin/Castle 2008 - Gilmore for Senator from Virginia 2008)
To: reaganaut1
The Short Selling ban was a self defeating loser to begin with. Many short sales are not speculative but rather defensive. (Short against the box - Where you sell short positions that you hold in your portfolio, thus taking a non position.) Later you hope to buy back the shares because you intended to hold your original stocks for the long term.
Removing this option put money managers in a place where they had to sell shares outright or ride the market down. Making it less likely that they would reinvest or cover their short position at a later date.
3 posted on
10/09/2008 8:59:48 AM PDT by
stocksthatgoup
(`Pontius Pilate voted "Present")
To: reaganaut1
They could have reinstated the uptick rule, and disclosure of short positions to the SEC may be a good thing.Every study I've ever seen of the uptick rule was that it was totally innefective. As for disclosure, it would provide a disadvantage to large institutions which are responsible for managing most of the retirement money in the country.
It's a bad idea. Better to let the free market be free.
4 posted on
10/09/2008 9:01:28 AM PDT by
tcostell
(MOLON LABE - http://freenj.blogspot.com - RadioFree NJ)
To: reaganaut1
Yes, reinstate the uptick rule.
5 posted on
10/09/2008 9:06:18 AM PDT by
TenthAmendmentChampion
(Lord please bless our nation with John McCain as president and Sarah Palin as Vice President! Amen.)
To: reaganaut1
They should pass a law that stock prices can only go up. That'll solve'er!
Government is the answer! Capitalism is dead, long live "capitalism."
6 posted on
10/09/2008 9:08:36 AM PDT by
mysterio
To: reaganaut1
Arturo Bris, a finance professor at IMD, a business school based in Switzerland, said he is conducting a study of the ban’s impact on the markets. Early evidence shows “the ban was counterproductive,” he said, and by “not allowing shorting, the market has dropped even more. Short sellers act as a cushion.” In falling markets, short sellers often step in as buyers to cover their positions.
That man gets it. Shorts provide liquidity to the market plus if they had left the shorts alone the market wouldn’t have tanked like it did.
7 posted on
10/09/2008 11:07:11 AM PDT by
sheana
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson