Short selling serves a very important bullish function. It works like the ballast tanks in a submarine. The market slowly acquires short sellers like a sub takes on water, but when the sell side gets too crowded, the shorts get squeezed, just like a sub blows its ballast tanks, and up we go. Shorts enter the markets at different price points, however they leave through the same door when the squeeze is on. I think it should be apparent since March of 2009, that the market can be made to do anything at all, which makes me question the intelligence of people who regularly short equities, knowing full well the Administration, the Treasury, the Fed, and the MSM will do and say anything to keep the party going. I short, but very judiciously in equities. It's dangerous to use too much market theory when discussing actual markets. The two differ widely at times. My personal observation is the market engages in price discovery until I enter a trade, then it plays it's little games and wrecks me, and then it returns to a normal auction market. LOL
I think the actions they take are not taken out of stupidity, they are intentional. Take Alan Greenspan for an example. His public comments today are 180 degrees different from when he headed the Fed. There's a reason for that, the system is corrupt. Obama isn't stupid, he's corrupt. George Bush isn't stupid, he's corrupt. All the things they do they do because it's required of them by a corrupt system.
Well when Greenspan had the chair he had the trade on and that is a change of perspective just like when you have a trade on
Damn Communists! ..... But wait, wasn't that the same thing China did? Maybe its not a "communist" problem, but rather people under both systems of government not understanding the implications of stopping short selling and is just a knee jerk reaction in a blind attempt to slow down a falling market. Just like QE was used to artificially manipulate markets/economics, so to will the attempts by China in the end fail. The longer they fight, the worse the final fall when it all comes undone. History shows time and again that the market always finds its way to real value in the end, not where value is manipulated to.
Here is the real thing with banning short selling, it (drastically) reduces liquidity which then makes the instrument much more susceptible to manipulation. The powers that be doing this in the last 10 years know damn well what they are doing, there is a trove of academic research on the topic, it is about making markets easier to manipulate.
Part of capitalism I think is destructive in a good way... Calling the bluff of companies by shorting them is a accountability deal
Yes. When a massive tidal wave that will utterly destroy everything in it's path has been on the horizon for eight years, we can assume that what is being done is deliberate.
The Central Bankers pump and dump essentially. They lend to other banks then when the economy slows they call in loans and take them over. The Chinese overlords made their money on the stock market rise by releasing bullshit data then selling while not allowing bagholders to sell. Anybody that thinks that some altruistic marxists rise to the top in a communist society are just stupid. It's a dog eat dog scenario and sociopaths always do well at that.