SEC proven clueless within 120 seconds

Discussion in 'Economics' started by Cutten, Sep 19, 2008.

  1. Today's open in financials is a great example of what happens when shorting is banned - no one can stablise the market when the majority want to buy and few longs want to sell. So what do we see? Financials opening up at crack crazy prices. No one with offers to keep a lid on the price ramp.

    The SEC unintentionally just gave a real-time lesson in economics 101. Shame they are too fucking dumb to learn - they probably don't even realise anything wrong happened.
     
  2. You're correct. Keep in mind that "The Public" will not not feel sympathy towards short-sellers, bears, plungers et al.
     
  3. Ye olde "Shift the supply curve up and to the left" trick.
     
  4. ndeavor

    ndeavor

    Why do you think that wasn't the SEC's goal? (to have an out of control surging gain in the financials especially)

    Add to that the waiver of the end of day corporate buybacks - which was a nono in the past because of paint taping.