The pathetic Chris Cox in action.
The day when the market really takes el dumpo and the shorts have all been chased away....the longs will all be in fetal positions BEGGING for those shorts to cover. And they won’t be there. Then we’ll see that DJIA -1000 down day.
It seems to me that selling long or or selling short is just betting... If it is in the public interest for the government to outlaw betting on football, it is certainly in the public interest to prohibit betting on the market.
The gov’t is ramping out lie after lie. Up until 2 weeks ago the SEC was denying naked short selling was even an issue and refused to investigate it. Then the market in financials tanked and naked shorts are the scapegoat. The cause isn’t naked short selling, which should be eliminated, and has been(a la the 25% financial rally). The issue is there are gobs of financials that are insolvent...from small ones to big ones...Washinton Mutual, Wachovia, Lehman Bros, Fannie, Freddie etc. etc. Now, stock cannot be borrowed to short...why? Cuz Goldman, Morgan Stanley, and every other big brokerage are short. If you ask to borrow stock to short, they won’t lend any to you, because they’re doing the shorting. You’ll never hear this in any congressional hearing. I agree that the market is poised for a possible major decline.
Selling stocks short is close to being a basic right. It is a simple outgrowth of stock ownership and the right of individuals to contract with one another.
The public has no legitimate interest in preventing short selling. Of course, that has not prevented our intrusive, overreaching, moronic, self-righteous, impudent government from interfering in the past.
The vultures are getting ravenous...
Naked shorting is illegal but the SEC does NOTHING about it.