Posted on 08/11/2011 3:23:52 PM PDT by library user
Cavuto talking about this on FOX Biz network right now. Just broke. He's trying to get more info. Huge, huge news.
Here's a Bloomberg story on it. Link only per FR policy:
John Galt has it here, with a link to the statement itself: http://johngaltfla.com/wordpress/2011/08/11/europe-bans-short-selling-in-belgium-france-italy-and-spain/
SEC did it as did Canada back in 2008.
THAT should tell you something BIG is up ( or down ) in Europe .
Probably French banks ARE indeed failing.
Shorting is a valuable tool that keeps companies honest and prevents them from over-valuing .
That being said, looks like Europe is nervous about getting through the woods over the next little while.
Oh , that’s apartheight
bump.
Geez, what will Soros do with his money? ;-)
This is not bad news to me. George Soros made his billions by shorting currencies and then manipulating the markets so he’d make money at the expense of millions of other people.
Only companies (or countries) in trouble complain about short selling. Short selling simply helps the market discover true value quicker. If you don’t like what the shorts are doing to a market — go long.
I guess they are brimming with optimism.
Wait a minute. Who is John Galt?/ha:-)
Shorting is also a means by which powerful men who hate America, such as George Soros, can drive companies into the ground and wreck the economy.
It works both ways.
Short selling is kinda like a gun, depends who`s fingers are on the trigger and their motives.
Anyway, looks like maybe those French banks really are going belly up and it`s not just a rumor.
There is nothing wrong with short selling, as long as it is not naked short selling, that is, not actually having the stocks in your possession when you buy and sell them.
I just saw him talking about it on FNC. He said it is just like putting a bandaid on a gaping wound -— it doesn’t solve the underlying problem. bttt
Banning short selling is like financial censorship: Now one with negative views about the stock is allowed to back up their opinion in the market.
I disagree.. while a tool.. and while the markets have the right to do this I liken it to any asset.
Should I borrow your home.. sell it to someone else.. but then buy it back if the value goes up to give it back to you?
Shorting an asset really makes no common sense, but since it’s just paper and not something you can really touch means you can do just about whatever you want with it.
Maybe but here is how it works.
I agree to sell you my home and I think it`s worth 2 million. You being a carpenter,electrician,plumber and brick layer all in one looked the house over top to bottom. You see the foundation is cracked and the electrical needs upgrading to fully grounded circuits. We both agree to let the market determine the price via real estate agents and the loser pays the difference.
I lied and lost as the real market value was much less. You won by determining the actual market value.
Shorting keeps companies honest.
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