short selling bans don't work

Discussion in 'Wall St. News' started by zdreg, Jan 19, 2018.

  1. zdreg


  2. Short sale ban = changing the rules in the middle of the game = uncertainty.
    Broad sell-offs = broad market fear = uncertainty.

    Uncertainty + uncertainty = stability.

    Looks like sound logic to me! o_O (and to think, someone had to perform empirical research to draw into question this logic)
    cdcaveman likes this.
  3. I would say broad market fear is a risk rather rhan an uncertainty.
  4. Once it becomes entrenched and widespread, I think uncertainty coalesces into risk- as in, if everyone freezes, moving can be risky.
  5. %%
    I like his last paragraph comment; a short selling ban may mean regulators have more negative info than they want to share. [LOL, in hindsight]:D Especially since some forced well managed banks to take ''gov help'' so as not to single out the bad ones......
    zdreg likes this.
  6. If it's certain, there is no risk. If there's risk, it is uncertain. Risk and certainty are mutually exclusive. Said another way, uncertainty is the risk in the risk / reward calculation. You can be more or less certain, but in absolute terms, absolute certainty cannot coexist with any risk.
    murray t turtle and matthewyoung like this.
  7. It seems certain that an S&P 500 index will produce noticeable returns over the long term. Why doesn't everyone invest in large cap indexes? And if they did, would that flatline the market?
    murray t turtle likes this.
  8. It seems certain, but it isn't..."Certain" is a black or white term--it is, or it isn't. There is no in-between. Anything that qualifies it (seems certain, pretty certain, kinda certain) is an acknowledgement of uncertainty.
    murray t turtle likes this.
  9. %%
    Seems certain, but since cant really predict the market, most likely will not.Good thing for us some like tech stocks,QQQ, small caps, medium caps, bonds....Volume on SPY is fine but some/plenty left us after 2008.LOL Good thinking, not the flatline part but the rest of your thoughts.:caution::cool:
    #10     Jan 22, 2018