Should Short Selling be Banned....

by SixofNine 27 Replies latest jw friends

  • SixofNine

    ...or severely limited until the financial crisis are resolved?


    (I say yes, btw)

    ((I also think derivatives trading should be curtailed to exclude anyone who doesn't have a direct relationship to the underlying products (at least for mortgages and oil and food) until there can be sensible transparency and regulation put into place.))

  • shamus100


    I think you'd be nuts to trade in the stock market nowadays. Talk about risky....

  • sammielee24

    I say yes. It is banned now in the UK I heard today and the USA is going to ban it as well apparently. It's fraud. The whole banking industry is corrupt and there are a lot of questions being asked as to how bad it really is. sammieswife.

  • Black Sheep
    Black Sheep


    Just because a few ratbags misuse the product does not mean that those who use it wisely should be penalised.

    How would you regulate it anyway? If your particular product isn't traded, there is usually something that follows it price wise that you can use to protect yourself.


  • Warlock

    Thank the shorts for taking down the price of oil.


  • BurnTheShips
    Should Short Selling be Banned....

    I work in the industry.


    Baaad idea. China did that. It worked really well. Shanghai is down 65% from peak. The problem is not short sellers, it is the clusterfuck of overleveraging after being drunk on artificially low interest rates and a bloated money supply. Who created that problem? Banning short selling is like blaming the flies for the shit. These kinds of manipulations just move the problem into the future where it will be bigger, badder, and uglier.

    While we are at it, maybe the government should mandate how much the market goes up. Why don't we just nationalize the stock market get it over with? What a joke.

    Barry Ritholtz:

    Here is tonite's theater of the absurd SEC headline:

    SEC intends to temporarily ban short selling, but it's not clear if the commission has approved the move. Cox is briefing congressional leaders. Separately, the government is seeking congressional authority to buy distressed assets.

    This is nothing short of a total panic by people who have no clue what they are doing. And to think, I mocked Russia for being a nation run by market commies.

    This is the ultimate bailout attempt, which will have repercussions far far beyond our imaginations:

    1) We suffer a loss of Market Integrity; The US is now a Banana Republic

    2) Blatant market manipulation: this is nothing more than an attempt to force markets higher;

    3) 60 days prior to a presidential election? This is a none-too-subtle attempt to influence the elections -- especially coming on top of the Fannie/Freddie bailout;

    4) The coming pop will create a huge air pocket, ultimately leading to us crashing much lower;

    5) Expect a huge increase in volatility -- upwards first, then down;

    We Are A Nation of Morons, led by complete Idiots, making us complicit in our own self destruction.


  • Witness 007
    Witness 007

    I think all short people should be banned!

  • BurnTheShips
  • SixofNine

    "Thank the shorts for taking down the price of oil."

    No. I was using "short selling" as it refers to stocks, not the idea of taking a short position on a commodity. Two very different things. Oil is speculated upon, and we can thank the speculators for the price of it having gone to 150. I see no benefit to society in oil being traded by anyone who doesn't have a direct relationship to the product.

  • SixofNine

    "I work in the industry."


    Please don't litter the board with comments like this. Tell us exactly what you do, if it really lends weight to your argument, or tell us nothing. "I work in the industry" is less than nothing. You could be someone who has their series 7, or lending slightly more weight to your argument, you could be the guy who sells coffee products to the local Fidelity office.

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