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09-19-2008, 03:08 PM
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Senior Member
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Join Date: Jul 2007
Location: Harvard Square, Cambridge, Massachusetts
154 posts, read 120,530 times
Reputation: 60
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This flies in the face of free market economics, and will cause greater damage to the economic system in the long term by creating a precedent for government controls.
Stopping short selling is a band aid move at the behest of worried over leveraged financial institutions. I guess we're a banana republic, where the elites will control capital movements for their personal gain.
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09-19-2008, 03:23 PM
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Senior Member
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Join Date: Feb 2008
Location: Humboldt Park, Chicago
1,457 posts, read 1,251,115 times
Reputation: 335
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What good is short selling?
Seriously, how does short selling benefit anyone other than traders who bet stocks will go down?
I don't see what value short selling adds. I had thought about short selling some financials for the past few years but never had the guts or understanding to get into it. Now, it looks as if I couldn't short financials even if I wanted to. The only reason I would have shorted financials would have been greed just to be clear, and I would have made a ton doing so.
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09-19-2008, 04:13 PM
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Senior Member
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Join Date: Nov 2006
1,041 posts, read 420,923 times
Reputation: 629
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Quote:
Originally Posted by Humboldt1
Seriously, how does short selling benefit anyone other than traders who bet stocks will go down?
I don't see what value short selling adds. I had thought about short selling some financials for the past few years but never had the guts or understanding to get into it. Now, it looks as if I couldn't short financials even if I wanted to. The only reason I would have shorted financials would have been greed just to be clear, and I would have made a ton doing so.
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If you only allow long positions you are only trading 1/2 the market. To put a stop to shorting is to interfere with free market dynamics. Basicaly the game is fixed. I have stopped trading altogether now because I refuse to play if the game is fixed. |
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09-19-2008, 04:18 PM
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Senior Member
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Join Date: Apr 2007
2,525 posts, read 1,101,738 times
Reputation: 641
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Short sellers help ferret out the fakers - those CEOs who inflate their earnings reports in order to inflate their stock price. They help CEOs and companies stay honest. If I remember right, it was a short seller who exposed Enron's accounting shenanigans. Short sellers keep markets efficient. They ensure that all information about a company is critically analyzed, and people don't just lap up press releases from the company as gospel truth.
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