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Free registration at the forum removes this block.Perhaps it is a prudent move then to halt naked shorting, at least until the markets recover but the move seems like sucking on throat lozenges to cure a cold its a measure which will only ease the pain of the problem we have but not solve it.From the time the SEC announced its temporary short selling restrictions in July until the order expired in mid-August, the S&P Financials sector surged 14 per cent. The VIX index of market volatility eased by 26 per cent.
phlgirl/ATW-
Short selling was the cause of the meltdown of the financial investment banks this week-- traders were *betting* that they would fail, so the stock values started to plummet.
So by some measure, the shorting actually *caused* the investment banks to tank.
That's why they're putting a 10 day ban on short calls.
They need to shore up the confidence in the system.
-Russ H.
(Paper asset folks-- if I got this wrong, please correct me)
I'm sour because the light went off and I asked myself if any of us are truly drivers. Can any of us truly say we are the drivers right now?
One of the most sacred investment i've noticed among the fastlaners is the money market fund and treasuries. Well yesterday, you basically had to pay the govt to hold your money and money market funds were almost replaced with mattress covers over the last 48 hours.
Go foreign....
Or... Go gold, silver or commodities....
and, I'm sure many other ideas I haven't thought of...
Their move to stop short sales is certainly limiting, but ALL the options haven't been taken away.
Edge said:i'm not going to stay away from these markets, I just realize that the rules can drastically be changed against you at any moment. These are rules that I can't manage and that keeps me from being in the drivers seat.
Again, i'm not typing this to be some type of sob story, i'm just saying that I feel i've been naive in the past. There's lots of opportunity in insane markets, just don't get a false sense of security that the rules are out there to keep a level playing field.
phlgirl/ATW-
Short selling was the cause of the meltdown of the financial investment banks this week-- traders were *betting* that they would fail, so the stock values started to plummet.
So by some measure, the shorting actually *caused* the investment banks to tank.
That's why they're putting a 10 day ban on short calls.
They need to shore up the confidence in the system.
-Russ H.
(Paper asset folks-- if I got this wrong, please correct me)
Ah.. gotcha. Makes sense
So, "smart" is the ability to adapt a plan or strategy to a change in the rules....
andviv said:All that much energy in finding who to blame...
instead of focusing on how to profit from the current and future rules changes
So, now that you feel that this is what will happen, how do you profit from it?
You can always leave if you don't like it, Jesse.JesseO said:MJ, Russ, Cantwait, AroundTheWorld, etc you guys want to pony up the bill for our government bailing out private companies who should have simply gone bankrupt for their stupidity?
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