Mish Reports: SEC States - NO MORE SHORTING

[Zynox]

http://globaleconomicanalysis.blogspot.com/

"Peak Insanity: SEC Plans to Temporarily Ban Short-Selling

Every time I think the height of insanity has been reached I have been proven wrong. My new official statement is: "There is no upward limit on insane actions by Congress, the SEC, the president, or for that matter anyone else."


From WSJ:

"The Securities and Exchange Commission took its most aggressive assault against bearish stock bets by stating its intention to issue a temporary ban on short-selling.

SEC Chairman Christopher Cox briefed Congress late Thursday of the agency's intention to take the extraordinary step of interfering with the market's regular functioning. Short-selling is a trading strategy of selling borrowed stock in hopes it falls and can be repurchased at a lower price."

So, the rules change whenever they become inconvenient ... reminds me of the 2000 and 2004 elections, they grasp at straws ... this is equivalent of closing half the bank, you may bet up but not down ... it may actually seize trading altogether ...

~ namaste ~

[arcora]

Are the short sellers required to cover their positions?

If yes, by when?

[gwynned]

http://globaleconomicanalysis.blogspot.com/

[INDENT]"Peak Insanity: SEC Plans to Temporarily Ban Short-Selling

Every time I think the height of insanity has been reached I have been proven wrong. My new official statement is: "There is no upward limit on insane actions by Congress, the SEC, the president, or for that matter anyone else."




"The Securities and Exchange Commission early Friday imposed a temporary emergency ban on short-selling of FINANCIAL COMPANY stocks, a trading method that bets the stocks will go down. As the financial crisis widened, entreaties had come from all quarters to stem a swarm of short-selling contributing to the collapse of stock values in investment and commercial banks."(emphasis added)

http://www.msnbc.msn.com/id/26787984

The stock market as I write this is up almost over 400 pts for the second day in a row, and is designed to save the money market mutual funds from deteriorating. I understand that one dropped a bit a couple of days ago, which is apparently 'unheard of.' We'll see if emergency surgery saves the patient or not.

[Zarathustra]

It's laughable to me that short selling is blamed for the tanking of INSOLVENT companies, as if being de facto insolvent would be just fine as long as no one paid attention to the fact.

[visual co-creator]

*

[carliec]

Yeah well the short sale ban end on Oct 2...that outta be a riot....lol

[JSErwine]

How are they stopping short selling?

If you purchase a stock are you going to be locked into that stock for a certain period of time?

I just got done listening to Obama, he made it sound like they are letting the Federal reserve do what ever they see fit.

It realy scares the hell out of me when they start liquidating assets and how many jobs will be eliminated in the process.