Okay, it was kind of funny when the SEC put restrictions on "naked" shorting for a few select financial institutions, but now it looks like they are trying to put an end to nearly all shorting of the finance industry to maintain a government mandated artificial elevation of asset prices—and this is just getting annoying. Today, Wall Street has become a fine example of a socialist economy.
ADDENDUM [10/1/08]: The ban on shorting was extended today by the SEC until October 17.
UPDATE [1/4/09]: In a nice validation, Cox, chairman of the SEC, expressed regrets over the shorting policy, and admits that on reviewing the data it had unintented consequences. Faced with similar circumstances he says he would not be inclined to repeat the action again.
UPDATE [3/26/09]: Recently, limits have been placed on shorting on down ticks, but you can still short on up ticks. Oh brother!
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2 comments:
It's just for a couple of weeks! Calm down. At worst you will only get some mini-bubbles.
However, Larry Kudlow seems to agree:
http://corner.nationalreview.com/post/?q=NDM4NjczNTM5YmQ5NjVlNGVkODgxZDhmMTBhOGJjZDc=
Deep Breath! That feels better thank you.
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