They just banned short selling in US

Discussion in 'Wall St. News' started by nitro, Sep 18, 2008.

  1. why such a negative point toward this breaking news?

    i've been very negative toward the SEC & the US gov't for that matter....(even with the naked shorting news yesterday).

    but i must admit this morning with the "ban short selling for 799 financials), i am impressed with the SEC. this is an incredible historic move by them.
     
    #211     Sep 19, 2008
  2. d08

    d08

    Read economics much?
     
    #212     Sep 19, 2008
  3. ES reach the night session limit up 5 min ago, 65 points!! Anyone know what the YM limit?
     
    #213     Sep 19, 2008
  4. what is that supposed to mean?
    the economy has been bad for quite some time since housing bubble bust...and it is getting really really really bad for almost a year already, you think it is just getting real bad this week? why then the market just suddenly dropped 1000 point this week?

    get real!
     
    #214     Sep 19, 2008
  5. Mecro

    Mecro

    LOL, you are the one who needs to get real.

    But no worries, reality will hit you eventually. At that point you will have lots of regret of not facing it sooner.
     
    #215     Sep 19, 2008
  6. Joab

    Joab


    No it's not incredible, it's very very stupid short term thinking.

    It will do nothing to fix the real problems with the system.

    All it will do is band aid a gaping wound.

    Free market s must be FREE otherwise they are just another totalitarianism state.

    But hey what ever floats your boat, I gave up on the US 8 years ago.
     
    #216     Sep 19, 2008
  7. dhpar

    dhpar

    another funny thing:

    i used to work on convertible desk - i wonder how they are going to hedge as converts move in the money and they can not hedge delta by going short stock...
     
    #217     Sep 19, 2008
  8. ivob

    ivob

    Yeah right. Who elected him?

    And even worse, he got re-elected after everyone already knew he was a screwup. I gave up on the US that same day for some decades to come.

    Ivo
     
    #218     Sep 19, 2008

  9. Ugh... are you kidding? Read through this whole thread from start to finish and maybe you'll see why...

    Some key points:
    Price discovery is no longer available... market decides the price, this takes that away.
    No way to hedge to risk, unless you want to do it with options.
    Short covers help catch free falls.
    You can only be on one side of the market now, and this will dry up liquidity.
    And countless other factors that derive from these basics and other more complex trading and vehicles for such.

    In the end, it doesn't matter what happens, someone has to pay... money might be created out of thin air, but not without consequence. This is, and all the other intervention is not a solution, it will just make it feel like you got jabbed 20 times instead of a single haymaker. Same damage in the end, just not as shocking. Maybe it works better, but it sure as hell ain't free markets... it's simply a puppet now.
     
    #219     Sep 19, 2008
  10. kitty -- how's is this different from releasing an atomic bomb in Japan? It's the same attitude pretty much... it's basically like a kid saying
    "ok guy, I don't want to play anymore, buah, buah.... I can never win this game... buah buah...."
     
    #220     Sep 19, 2008