They just banned short selling in US

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



  1. That's right. LOL


    democrats barely a full year in congress and look what happens. The market melts down.

    How can we trust the democrats with anything?!
     
    #71     Sep 18, 2008
  2. dhpar

    dhpar


    good point. they basically lent huge amount of dollars to banks to buy stocks today to recapitalize themselves at the expense of shorts tomorrow - haha.
     
    #72     Sep 18, 2008
  3. from carl denninger at market ticker...

    this is astounding?????
    ------------------------------------------------
    "The action by the four banking agencies provides more favorable accounting treatment of so-called good will, an intangible asset that reflects the difference between the market value and selling price of a bank. The move is similar to a step taken in the midst of the savings-and-loan crisis that helped many institutions in the short run.

    Over the longer term, that decision increased the overall costs of the bailout after the government took away the good will benefits. Under the proposal issued this week, the regulators would permit buyers of banks and thrifts to count some of the good will toward meeting their regulatory capital requirements."

    Let me decode this for you.

    If I buy a bank for $30 billion but the "net" value is only $20 billion, then there is $10 billion of "Good will" on the balance sheet. That's the difference between what I paid and what "fair value" is for that particular transaction.
     
    #73     Sep 18, 2008
  4. gangof4

    gangof4

    i have never seen the ES DOM look like this before. this is a trip. wonder if they'll outlaw shorting futures too!

    actually, shorting futures may be the only hedge available. be interesting to see if we all the sudden see single stock futures get a shitload of volume.

    this is so fucked up.

    thing is, 99%+ of Americans don't have clue 1 and this will sound like a great idea to them. ..
     
    #74     Sep 18, 2008
  5. aqtrader

    aqtrader

    in china, all sorts of short selling is illegal. the market still keeps going down and down from the top 6200 a year ago to current 1800. downed 70%. still not see a bottom.....
     
    #75     Sep 18, 2008
  6. mokwit

    mokwit

    How do we play this. If Options market makers can still short (as per before) then presumably puts will be bid up as they represent the only way to short?

    Lets all start thinking out loud here.
     
    #76     Sep 18, 2008
  7. d08

    d08

    This Cox guy is republican.
     
    #77     Sep 18, 2008
  8. bgp

    bgp

    you know , you might blame the democrates for being the majority, but who in the hell has grown the gov ? i always thought that the dems did that , but now the frikin republicans have taken over. i use to call myself a republican , but now i'm a independant.

    bgp
     
    #78     Sep 18, 2008
  9. m22au

    m22au

    #79     Sep 18, 2008
  10. nitro

    nitro

    Do yourselves a favor and bring up a chart of a one month SPX 1 hour bars.

    See the trendline break? (Assuming overnight action) IF this rule is approved, I expect to see first resistance at 1242.xx, blast through that in the overnight session, and end up at 1282 to 1292. That is locked limit up approximately for the overnight session.

    Notice the low was 1132.xx. That means 1238 ES was resistance (approx 1232 SPX if cash market open), and the next resistance above 1282-1292 is now 1332. If it is not approved, expect to see 1182, depending on when RTC gets approved.

    Those are your targets.

    nitro
     
    #80     Sep 18, 2008