If the stock drops more than 10% they want to halt short selling. But why not halt people from going long if a stock goes over 10% to protect people from stock pumpers. So pumping up prices to stupid levels is okay, but it is not okay to discover a company is full of shit and shortsellers push it down? Maybe the SEC should listen to shortsellers, maybe they will learn about things like Repo 105,enron,etc.. before they explode.
because a price decline into the abyss can jeopardize an entire company, an over valued stock price doesn't. thats probably what the regulators would say if you asked them.
Money printers function best in rising Markets. You should read Harry Markopoulus' new book, it'll clear up any anxiety over what the SEC does and doesn't do. Heavy emphasis on the <b>n't</b>
Just like today in housing prices, when prices were going up 20-25% a year they did not do one thing to curb the rise, they let it be, they let the markets get completely out of control, people were actually dumb enough to go in and buy after prices were up over 100% in only a few years, fast forward to now, they are trying every possible to get foreclosures down and keep people in their houses. So basically when things are great and people and greedy are making money like its falling from the sky everything is fine, when things start to turn the other way, you know when people start losing money in stocks, investments, housing they try everything they can to prop it up and keep it up, that's why there are trillion dollar deficits and free money for all, especially wallstreet where stocks only go up.