http://www.bloomberg.com/apps/news?pid=20601087&sid=ai5PLqcRXWyc ......................................................... If there ever was proof that the long only bias of some general government's regulations are antiquated.....the recent period proves it.... Buy and hold suggests that one can time the market no matter what the time frame.... Whereas the reality is that economies give and take.....ie breathing.....and those that are in sink will prosper.... The best that governments can do is to provide an unencumbered direct access electronic securities highway that is truly globalized whereby the cost of freight is 20 cents per 100 units or less.....with no dark pools or other markets which would fragment the total marketplace.... It is also imperative that this new securities highway be constructed such that each population will have more chances to preserve their wealth versus their own currencies....As this becomes even more important as base currencies change their leadership roles.... Price will rule the day and will allow for unencumbered short selling coupled with long strategies.... The regulations need to be common sense based and must allow for a free marketplace.... The China Govt. funds or any other govt. housed funds should find it not prudent to not have capital in hedge funds....meaning long or short strategies allowed.... This also uncovers just how antiquated the SEC regs are ....which have basically imposed losses via the long only biased rules....Just one more reason to eliminate the SEC....