The SEC is looking into banning short-selling in the stock market. Temporarily.
Are they morons? The problem is that government didn’t regulate businesses that were amassing leverage and assets that could take down the nation’s financial system. Since they had their heads up their asses then, they feel like they have to do something now. This is stupidity.
So people will cover their shorts. The markets will go higher. Then you’ll see people bail from the market. I know I don’t want to own securities in a market like this.
UPDATE: If this is true, that this is being done to potentially stop financial terrorism, then I stand corrected. It looks like a significant portion of the shorting is being down overseas, and potentially London is seeing similar activity, hence the temporary ban until order is restored. Wow.
This is ridiculous. They need to stop this bull*** or they are going to make this worse.
These rallies like yesterday and today are only temporary. They need to let the market find its natural bottom instead doing these stupid bailouts. If they never helped Bear Stearns, this would have happened a couple of months ago and we would have been through with this by now.
Financial Terrorism? Wow! How do they come up with this stuff? Priceless.