According to the AP (link) the SEC is "weighing" a ban on shorts. The more I think about this, the more freaked out I'm getting. Stopping short sellers is not going to stop these financial companies from being junk and Cox knows it. The truth is that they're highly susceptible to shorting because they're worthless companies.
Two days ago they printed $40 billion to fund this RTC thing which is double talk for a WaMu bailout. Printing money money and banning short sales are the kinds of desperation measures that nations always try as they collapse. It absolutely never works. If they ban short selling, as far as I'm concerned that's a signed confession that the American economy is within a couple of weeks of total collapse. We could actually be looking at a real sure enough SHTF scenario before the elections. I'm just blown away by how fast this is all moving.
PeakOil is You
SEC bans short-selling in US
Re: SEC bans short-selling in US
by smallpoxgirl » Fri 19 Sep 2008, 01:44:27
"We were standing on the edges
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
-
smallpoxgirl - Expert
- Posts: 7258
- Joined: Mon 08 Nov 2004, 04:00:00
Re: SEC bans short-selling in US
by Snowrunner » Fri 19 Sep 2008, 01:52:34
$this->bbcode_second_pass_quote('smallpoxgirl', 'D')oes anyone else feel like they've just stepped through the looking glass? The world has just gotten very bizarre.
Dunno, I thought the whole thing was utterly bizarre 15 years ago, hence why I never got into (any) market.
I am surprised though at which pace the whole thing seems to become unglued though.
-
Snowrunner - Tar Sands
- Posts: 795
- Joined: Wed 24 Aug 2005, 03:00:00
- Location: Screwed
Re: SEC bans short-selling in US
by Tyler_JC » Fri 19 Sep 2008, 02:42:25
$this->bbcode_second_pass_quote('smallpoxgirl', 'A')ccording to the AP (link) the SEC is "weighing" a ban on shorts. The more I think about this, the more freaked out I'm getting. Stopping short sellers is not going to stop these financial companies from being junk and Cox knows it. The truth is that they're highly susceptible to shorting because they're worthless companies.
Two days ago they printed $40 billion to fund this RTC thing which is double talk for a WaMu bailout. Printing money money and banning short sales are the kinds of desperation measures that nations always try as they collapse. It absolutely never works. If they ban short selling, as far as I'm concerned that's a signed confession that the American economy is within a couple of weeks of total collapse. We could actually be looking at a real sure enough SHTF scenario before the elections. I'm just blown away by how fast this is all moving.
Two days ago they printed $40 billion to fund this RTC thing which is double talk for a WaMu bailout. Printing money money and banning short sales are the kinds of desperation measures that nations always try as they collapse. It absolutely never works. If they ban short selling, as far as I'm concerned that's a signed confession that the American economy is within a couple of weeks of total collapse. We could actually be looking at a real sure enough SHTF scenario before the elections. I'm just blown away by how fast this is all moving.
SPG,
I have never been more scared in my life about the financial system than I am right now.
When I heard that the UK was banning short selling, I thought to myself, this is it. They've completely abandoned everything they used to pretend they stood for. The Free Market is officially dead.
It's one thing to ban naked short selling because it is technically against the rules to begin with. But now it appears as though that was merely a warm up. They wanted to desensitize us before the final blow. Eliminate all short selling of any kind. It's lunacy.
The fundamental picture HAS NOT CHANGED. House prices are still falling. Mortgage default rates are still high and rising. The banks will continue to bleed red ink until this reverses.
Housing is NOT reaching the bottom this year or even next. I don't think we're going to see real stabilization or growth until 2010. And that assumes that interest rates don't move. After the crash in the 1990s, it took almost 6 years for the market to bottom.
We peaked in 2005/2006 and hit a much higher level relative to incomes than any time in American history. It is going to take a while...
If they think they can legislate their way out of this mess and just ban any kind of financial activity that frightens them, they need to put the bong down.
"www.peakoil.com is the Myspace of the Apocalypse."
- Tyler_JC
- Expert
- Posts: 5438
- Joined: Sat 25 Sep 2004, 03:00:00
- Location: Boston, MA
Re: SEC bans short-selling in US
by smallpoxgirl » Fri 19 Sep 2008, 03:08:21
$this->bbcode_second_pass_quote('Tyler_JC', 'I') have never been more scared in my life about the financial system than I am right now.
I'm trying very hard not to do anything rash, but I'm freaking out right now.
This is the "No way will it work, but we might as well try it." move. These are smart men. There's no way they think this is actually going to work. It evidences a level of desperation on their part that chills me to the bone. If they're this desperate, we are in big big trouble.
"We were standing on the edges
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
-
smallpoxgirl - Expert
- Posts: 7258
- Joined: Mon 08 Nov 2004, 04:00:00
Re: SEC bans short-selling in US
by smallpoxgirl » Fri 19 Sep 2008, 03:16:05
And who's right in the middle of this? The crown prince of idiotic self-defeating government regulations, and perhaps my least favorite living human, Chuck Schumer.
"We were standing on the edges
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
-
smallpoxgirl - Expert
- Posts: 7258
- Joined: Mon 08 Nov 2004, 04:00:00
Re: SEC bans short-selling in US
by jbrovont » Fri 19 Sep 2008, 03:43:24
You're right. It is insane. It is unbelievable. It is incomprehensible.
$this->bbcode_second_pass_quote('AirlinePilot', 'W')hat happens after the shorts cover? Im guessing some huge bounce in the markets tomorrow, gigantic pressure to bid up, go higher, then comes the real crash, probably within a few days/weeks.
This is going to make the current volatility look like Child's play.
I'm kind of dumbfounded right now, this seems actually slightly insane. Either that or they are covering up some really big implosion that was about to go down.
Welcome to the new world. They have changed the rules of the game in midstream and be damned the consequences.
UNBELIEVABLE!
$this->bbcode_second_pass_quote('AirlinePilot', 'W')hat happens after the shorts cover? Im guessing some huge bounce in the markets tomorrow, gigantic pressure to bid up, go higher, then comes the real crash, probably within a few days/weeks.
This is going to make the current volatility look like Child's play.
I'm kind of dumbfounded right now, this seems actually slightly insane. Either that or they are covering up some really big implosion that was about to go down.
Welcome to the new world. They have changed the rules of the game in midstream and be damned the consequences.
UNBELIEVABLE!
-
jbrovont - Heavy Crude
- Posts: 1003
- Joined: Fri 16 Jun 2006, 03:00:00
