XLF down 8% with no shorting in financial s. Biggest one day decline all year I think. Hmmm, maybe this INCREASES volatility.
It will definitely increase volatility. Wait til some good news comes out and we get to fade the futures. The rallies will go much farther because no shorting into it and the declines will go much deeper because no short covering into it. This is a futures trader's dream come true
No matter what happens you will second guess anything they do. Exactly what would you like, the market to open up 2000 points and stay there for a month?
<cite> Hopefully regulators learned a lesson today about short selling bans </cite><p>Could you be a little more specific, are speaking about the regulators in Pakistan or the USSA, or both?
I doubt it.... ie Greenspan.... Educated far far beyond his intelligence..... If anything they should single out the big volume nakeds..... F'in idiots..... A bigger than normal position is very visible....and how it was executed.... This is not difficult... Leave it to the idiots to make it difficult.... This is so bad ......
Basic economic theory predicts the following consequences of no short-selling: 1) less liquidity 2) less accurate prices 3) more volatility These 3 factors all contribute to lower participation by end-users i.e. less companies issuing stock, less people investing in stocks. This is turn raises the cost of capital, which in turn reduces employment, business investment, and national prosperity.