Captain-
I'm right there with you... Too bad everything is so MANIPULATED that you can't put your money anywhere safe... Might as well convert to Norwegian Kroners...
PeakOil is You
SEC bans short-selling in US
Re: SEC bans short-selling in US
by frankthetank » Fri 19 Sep 2008, 08:56:35
lawns should be outlawed.
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frankthetank - Light Sweet Crude
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Re: SEC bans short-selling in US
by ReverseEngineer » Fri 19 Sep 2008, 09:06:37
$this->bbcode_second_pass_quote('Roy', '
')
If I had money invested in this market I'd be running away right now. Wait, I cashed out in 06. Nevermind.
')
If I had money invested in this market I'd be running away right now. Wait, I cashed out in 06. Nevermind.
Beat ya to it. I cashed out 25 years ago. Rigged game all the way. I am comfortable with making predictions when I know the parameters, but this game was obviously rigged from the get go, after lookig at over 1000 balance sheets 25 years ago it was obvious. The market had so much inherent risk in it even THEN I could not justify it to myself, and I sure had trouble making the numbers work out for the folks I worked for.
Lots of folks played the game for the last 20 years, they basically destroyed the world by doing so. If you bought into this charade, count yourself as one who set the world on fire. I am glad I was not part of that fiasco.
Reverse Engineer
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ReverseEngineer - Intermediate Crude
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Re: SEC bans short-selling in US
by Roy » Fri 19 Sep 2008, 09:17:46
Last edited by Roy on Sun 12 Oct 2008, 10:11:56, edited 1 time in total.
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Re: SEC bans short-selling in US
by smallpoxgirl » Fri 19 Sep 2008, 10:28:39
$this->bbcode_second_pass_quote('GreyGhost', 'W')hat's the big deal about this? Why should you have the right to sell something you don't even own?
The reason it's important is that the markets are supposed to be about price discovery for companies as much as anything. It's a see-saw between bears and bulls. Some think it's worth more, and they buy the stock. Some think it's worth less and they short the stock. Between them, they establish a fair value for the stock.
If a company has value, then they aren't particularly susceptible to short selling and the short sellers end up pumping free money into the market. Short selling only works, when a stock is over-bought and the stock price exceeds company's value.
This is a typical Bush administration kind of move. "If you won't tell us what we want to hear, then you can't participate in the process." It's the roach motel approach to building stock prices. If nobody can push prices down, then they have to go up. Right? Well certainly they will for a while, but the stock price will become(even more) disconnected from the actual value of the company. The more disconnected the prices become from the actual value of the companies, the greater the potential for nasty corrections and panics becomes. These companies are all going to eventually become bankrupt. They are heavily invested in an asset class that is dropping like a stone. There is no evidence of a bottom in the housing market. That reality is unpleasant, but it's real. This whole week has been one huge denial process. Everyone is scrambling to figure out how we can deny reality for another day. Every move we make to deny reality makes the eventual outcome that much worse. Every time we try to bail one of these companies out, we make the problem worse. Playing make-believe with the stock markets makes the problem worse. It doesn't make it go away, it just gives it longer to fester. You can try to cover over your termite infested wall with wallpaper and make it look pretty, but eventually your house will fall down. Ripping open the wall, cleaning out the rotted material, and replacing the structure makes a big mess, but it's the only way you end up with a sound place to live.
This is a historic day. September 19, 2008 will end up in a history book somewhere as the day the SEC banned short selling to try to stem the stock crash of 2008.
"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
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smallpoxgirl - Expert
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Re: SEC bans short-selling in US
by smallpoxgirl » Fri 19 Sep 2008, 10:37:43
$this->bbcode_second_pass_quote('Captain_Meh', 'L')ikewise. But I have to admit: I am seriously thinking about withdrawing all of my money out of the bank and cashing out my money market account today.
I'm still pondering, but I'm seriously thinking about closing my investment account and moving to a mix of precious metals and cash. By that I mean physical metals you can hold in your hand and actual cash you can hold in your hand. Investing in this market if you're forbidden to short, seems to me to be rank suicide.
"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
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smallpoxgirl - Expert
- Posts: 7258
- Joined: Mon 08 Nov 2004, 04:00:00
Re: SEC bans short-selling in US
by Tyler_JC » Fri 19 Sep 2008, 10:51:28
By the way, the SKF is currently frozen (read: worthless).
Along with every other short fund.
I have just been robbed of thousands of dollars by the US Treasury Department.
Along with every other short fund.
I have just been robbed of thousands of dollars by the US Treasury Department.
"www.peakoil.com is the Myspace of the Apocalypse."
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Re: SEC bans short-selling in US
by AgentR » Fri 19 Sep 2008, 10:57:25
Damage is permanent, since the whole notion of a short depends on rules in the future being known and dependable.
That is no longer the case.
That is no longer the case.
Yes, we are. As we are.
And so shall we remain; Until the end.
And so shall we remain; Until the end.
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AgentR - Heavy Crude
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Re: SEC bans short-selling in US
by mmasters » Fri 19 Sep 2008, 11:00:27
$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.
Think it's weird now give it a few years!
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mmasters - Intermediate Crude
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