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.
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.