Should Short Selling be Banned....

by SixofNine 27 Replies latest jw friends

  • BurnTheShips


    The bear raids on the banks and brokers were NOT a case of piling on by US based hedge funds. And from what he was seeing and hearing about in terms of order flow, the vast majority of the financial short selling the past week or so were being done overseas. It appears that the lion's share of shorting was coming out of overseas bourses such as London and Dubai.It may not be a coincidence that the financial short selling ban is both here and in London.
    Then there is another coincidence: The huge increase in shorting of the financials occurred on the anniversary of 9/11. And on top of that, the same institutions attacked on 9/11/01 were the ones suffering in recent days.

    Is anyone investigating whether this is a case of financial terrorism? He wanted to know if someone was at least looking into this question (Joe is buds with Jim Cramer, and mentioned it to him, who then omitted to cite in his column that this was Joe's theory, not his own).

    Anyway, its an interesting theory, one that seemed kinda out there -- until last night's emergency action. Nothing else really explains the insanity of banning short sales -- except for Joe Besecker's questions.

  • BurnTheShips
    Please don't litter the board with comments like this.

    Apparently you will seize on something like this if the actual meat and potatos content disagrees with you. If your worldview is too fragile, I can understand that. I've brought some good information on the subject, why don't you comment on that? Oh I know why.

    If you like, I can just stay off your thread.



  • SixofNine

    "Banning short selling is like blaming the flies for the shit."

    Two points, A) the flies are still just an unnecessary nuisance, and B) when it comes to huge financial institutions, the flies are more than just a nuisance, they're a danger to people who weren't "playing" the stock market.

  • SixofNine

    "Nothing else really explains the insanity of banning short sales..."


    lol, do you primadonnas ever listen to yourselves? How can something, even if it turned out to be ineffective, be "insanity" when it does nothing harmful? You act as if shorting stocks is some sort of pillar of a functioning society. uh, no.

  • BurnTheShips

    Clean the shit or the flies process it for you. Short sellers are the flies that find the shit before anyone else does. They are part of the price discovery mechanism. They discover fraud. Short sellers are the canary in the coal mine, Enron had suspicious shorting for weeks before the shit hit the fan. This sort of thing has happened repeatedly. This is how the market transmits information. Without information sane allocation is not possible.

    However, it seems that the short selling may be an act of "financial terrorism", if that is the case, intervention is justifiable, IMHO.

  • Warlock
    Oil is speculated upon, and we can thank the speculators for the price of it having gone to 150.

    When you buy a stock, you can call it whatever you want, but it is still speculation.

    Banning short selling is just another bailout by the government. What should happen is the uptick rule should be brought back.

    The finger is pointed at the shorts, while the blame is really on those who mis-managed the financial institutions like.............take your pick.


  • beksbks

    You guys are turning me on.

  • BurnTheShips
    You guys are turning me on.


  • Aculama

    I think we should dress modestly...NO SHORTS!!!

  • snowbird
    You guys are turning me on.

    Me too ... to research Fiat money, the Bretton Woods System, the IMF, the Federal Reserve Banking System, etc.

    I feel like I'm in someone's classroom all over again. I remember learning about this in civics and business law classes 1970-71.



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