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.