SEC Bans Short Selling

[TheReverend]

Anyone have detailed information on what exactly is getting the ban.

I've read financial institutions and in some places I've seen financial institutions and securities that have been aggressively attacked by shorts.

Anyone have some clarity on this?

[ak1971]

Originally Posted by TheReverend

Anyone have detailed information on what exactly is getting the ban.

I've read financial institutions and in some places I've seen financial institutions and securities that have been aggressively attacked by shorts.

Anyone have some clarity on this?

Its a temp ban on shorting financials. Good and bad. The problem has been that the shorts have been piling on and driving share price down so its virtually impossible to raise any capital. so it ends up being a self fulfilling prophecy that these companies are screwed. The bad side IMHO is screwing with the natural flow of the markets.

Ban on naked short selling is good, this is bad. BTW Im long fannie @ .41 so from a personal standpoint I couldnt be happier.

[TheReverend]

Originally Posted by ak1971

Its a temp ban on shorting financials. Good and bad. The problem has been that the shorts have been piling on and driving share price down so its virtually impossible to raise any capital. so it ends up being a self fulfilling prophecy that these companies are screwed. The bad side IMHO is screwing with the natural flow of the markets.

Ban on naked short selling is good, this is bad. BTW Im long fannie @ .41 so from a personal standpoint I couldnt be happier.

Bleh, was hoping it was a little broader and wish they drove Goldman into the ground. Oh well. Why can't they just re-instate the uptick rule and get harsher on naked shorts??!

[Spider]

smacks of socialism ....tamperin with the free markets and all

[ak1971]

Originally Posted by TheReverend

Why can't they just re-instate the uptick rule and get harsher on naked shorts??!

I completely agree. If they would just enforce fail to deliver rules, that would be key.

[TheReverend]

Originally Posted by ak1971

I completely agree. If they would just enforce fail to deliver rules, that would be key.

The SEC just needs teeth. All bark and no bite. They've gotta know all the illegal hedge and Goldman manipulation going on (how can you miss it?!?!?) but they never take any action aside from the occasional threat of investigation. It's ****ing bull****. Of course they lock up Martha? Retards need some real power and some elbow grease.

[ak1971]

Originally Posted by TheReverend

The SEC just needs teeth. All bark and no bite. They've gotta know all the illegal hedge and Goldman manipulation going on (how can you miss it?!?!?) but they never take any action aside from the occasional threat of investigation. It's ****ing bull****. Of course they lock up Martha? Retards need some real power and some elbow grease.

They need to lock up flunkies like Jim Cramer...he only starts yapping about naked short selling when he thinks the SEC may start doing something about it. When all the time he and his buddies at thestreet.com are writing bs for thier hedgie buddies.

[Spider]

What in the hell does the South East Conference in NCAA have ot do with all of this ?

[TheReverend]

Originally Posted by ak1971

They need to lock up flunkies like Jim Cramer...he only starts yapping about naked short selling when he thinks the SEC may start doing something about it. When all the time he and his buddies at thestreet.com are writing bs for thier hedgie buddies.

Haha tell me about it! CNBC is loaded with ex Goldman and hedge employees who only run their mouth about what's in their interest (Cramer and that sexy Burnett--I've got something to shut her up-- are prime examples)

[ak1971]

Ive been doing some research on this today, came up with this..

In a bear market, bullish investors always come to believe that short sellers are 'driving the market down,' when in fact, the decline is almost entirely due to selling from within their own over-invested ranks. Sometimes authorities outlaw short selling. In doing so, they remove the one class of investors that must buy. Every short sale (except when stocks go to zero) must be covered, i.e., the stock or derivative contract must be purchased to close the trade. A ban on short selling creates a market with no latent buying power at all, making it even less liquid than it was. Then it can dribble down day after day, unhindered by the buying of nervous shorts. Like all other bans on free exchange, a ban on short selling hurts those whom it is designed to help

[TheReverend]

Originally Posted by ak1971

Ive been doing some research on this today, came up with this..

In a bear market, bullish investors always come to believe that short sellers are 'driving the market down,' when in fact, the decline is almost entirely due to selling from within their own over-invested ranks. Sometimes authorities outlaw short selling. In doing so, they remove the one class of investors that must buy. Every short sale (except when stocks go to zero) must be covered, i.e., the stock or derivative contract must be purchased to close the trade. A ban on short selling creates a market with no latent buying power at all, making it even less liquid than it was. Then it can dribble down day after day, unhindered by the buying of nervous shorts. Like all other bans on free exchange, a ban on short selling hurts those whom it is designed to help

From that end, I can see in theory that that's the case. But I think this whole move was based on halting naked-shorts. It's obvious it's been pretty common-place lately despite being illegal. The government's ineptness in all facets and the complete lack of enforcement just tells me they don't even know how to find them, so instead they've halted all shorting. Oh well. Just my opinion of the situation.

[ak1971]

I also found out today that the idiots dont know what ETFs are..You can still buy skf (ultra short financials) so yes you can still short.

[defenseman]

They need to ban it "until further notice" at this point....dman

[TheReverend]

Originally Posted by ak1971

I also found out today that the idiots dont know what ETFs are..You can still buy skf (ultra short financials) so yes you can still short.

Now that's interesting... Sheer stupidity or another case of them flashing news bytes while truly doing nothing?

[L.A. BRONCOS FAN]

[L.A. BRONCOS FAN]