Hey guys, I've noticed something strange about the current tank... [the one that started 7 days ago...] we've had no pullback! My theory, is that there are no shorts in financials, so no one is taking profits when things go down [no greed, only panic in the market] ...and financials are leading the market... I know it sounds a bit crazy but is it possible that the ban on shorts has only made matters worse?
There is no QUESTION that the ban on shortselling has destroyed this market. Liquidity evaporated, hedgefunds stopped operating, option markets broke down.. So when you wanted to sell, you ahd noone to sell to. Dumbest move EVER by the SEC. DUMB DUMB DUMB DUMB DUMB!
What I was thinking all along. Also as prices fall and volatility increases the ability to buy on margin is impaired. Brokers, like Scottrade, fir example, won't let you buy PRU online (to supposedly protect both parties, but killing PRU's price.)
I wonder if they're still blaming naked shorts for the collapse of financial stocks... ??? I wonder if they're just going to call this tank "Black October"... since everyweek we seem to have a new black monday, tuesday, thursday and friday [black wednesday only happens every two weeks... : / ] strange days...
Strange concept, and I realize it isn't the american way, but maybe we should have people in charge that actually know what they're doing. Who the F... do they think provides fuel for up moves?
Why is it that whenever we have these things they always seem to meltdown in October? (yes, I know this time it has been melting down for a while, but it seems every day this month has been brutal)
It's makes me think as to whether or not the reforms taken after the 07 bank panic [the Fed], after the great depression [Securities Act of 1933 and Securities Exchange Act of 1934], or after any of the subsequent crashes have had any effect on the stability of the whole market system... after all these reforms, we still have a crash and a bank panic about every 80 years... [the crash usually 20~ years after the panic] ... all this govmnt measures have been as effective as the war on drugs... or the war on poverty... or the war on terror... or the Iraq war...
the dumbest move the SEC made was not enforcing its own rules. If they would have done that, they would not be, and have put us, in this position. I'm not just talking about naked shorting. Remember the BSC exec who said, a week before the collapse, when bear had 17 billion in cash, the SEC came in for an audit, and it lasted for seven hours? How can you audit a firm that size in seven hours? And that negligence is duly noted in a new SEC IG report. No, they have had plenty of 'dumb moves'. It's criminal. And they will go to jail.
That's because companies give results in October... and once the numbers are out all the make-up falls off... no more BS... just hard cold numbers...