Should shorting be suspended/banned?

[cordelia]

It's apparant that no one understands what sort selling actually is..even the journalists and more disturbingly.. the politicians who run this country...most people get a little bit of information and try to connect the dots....

Public focus of short selling, is totally confined to the concept of "selling a stock you don't own", labelling the seller as some sort of evil, devil worshipping criminal....without actually examining the different forms it can take, the processes involved and the outcomes.

It is true ....short selling as a broad genre ..can be loosely described as above...However, no one seems to really understand the difference between a short sale which arranges "the borrow" prior to the trade and one that doesn't....

I have said this over and over again.....read my previous posts because I am not repeating it..that's if you want to...


but....for all those longs who are so eager to declare short selling as the reason for the problems in the stock market..did it ever occur to you that short sellers provide support for your long positions by covering their short ones...Ar some point when a stock is falling traders who are short have to close out their positons..They now become buyers...Banning short selling in its entirety has effectively eliminated buyers whpo provide support

The market won't have a balanced equilibrium without covered short selling....

I think as a regular trader you aren't aware of the type of short selling that your broker offers...Does anyone know...

 

[Wysiwyg]

The market won't have a balanced equilibrium without covered short selling....

Hi there cordelia, why do prices drop rapidly?It is because the holders are selling along with the short sellers which compounds what would normally be holder profit taking.

 

[Greg71]

If shorters weren't covering, creating support, wouldn't the effect be support, just at a higher price?

 

[chops_a_must]

Hi there cordelia, why do prices drop rapidly?It is because the holders are selling along with the short sellers which compounds what would normally be holder profit taking.

Not really.

Big shorters need that liquidity to buy back into, so it gives others a place to sell.

Without them you may get massive spreads, and may get an 87 type scenario where there are no bids in a worst case scenario.

 

[wayneL]

It's apparant that no one understands what sort selling actually is..even the journalists and more disturbingly.. the politicians who run this country...most people get a little bit of information and try to connect the dots....

Public focus of short selling, is totally confined to the concept of "selling a stock you don't own", labelling the seller as some sort of evil, devil worshipping criminal....without actually examining the different forms it can take, the processes involved and the outcomes.

It is true ....short selling as a broad genre ..can be loosely described as above...However, no one seems to really understand the difference between a short sale which arranges "the borrow" prior to the trade and one that doesn't....

I have said this over and over again.....read my previous posts because I am not repeating it..that's if you want to...


but....for all those longs who are so eager to declare short selling as the reason for the problems in the stock market..did it ever occur to you that short sellers provide support for your long positions by covering their short ones...Ar some point when a stock is falling traders who are short have to close out their positons..They now become buyers...Banning short selling in its entirety has effectively eliminated buyers whpo provide support

The market won't have a balanced equilibrium without covered short selling....

I think as a regular trader you aren't aware of the type of short selling that your broker offers...Does anyone know...

It's useless cordelia, if they haven't got it by now, with all the discussion on this board, they never will.

Save your energy for another battle mate.

 

[cordelia]

It's useless cordelia, if they haven't got it by now, with all the discussion on this board, they never will.

Save your energy for another battle mate.

Yes, I have to agree.....I didn't start out in search of a battle but I found one....

 

[It's Snake Pliskin]

I would also like to know:

Should shorting be Banned in the oil market?

 

[chops_a_must]

I would also like to know:

Should shorting be Banned in the oil market?

Nokia certainly didn't answer it.

Despite claiming evidence of banning shorting being such a great idea.

 

[nioka]

Nokia certainly didn't answer it.

Despite claiming evidence of banning shorting being such a great idea.

Thinking, thinking, thinking. All will be revealed in the fullness of time.

 

[wayneL]

Thinking, thinking, thinking. All will be revealed in the fullness of time.

This is going to be interesting

 

[cordelia]

OMG.. WayneL i just noticed your avatar and name ..i didn't realise you were an evil short seller! Do you have any distinguishing features that might alert unsuspecting longs as to your true intentions? Perhaps a desire to eat children, assassinate the Queen, eat the livers of dead sheep....or God forbid ....vote liberal

 

[Bushman]

This thread is evidence that Dubya has found his new terrorists! Classic. A decoy and everyone laps it up. Goebbels had nothing on Paulson and his 'it is a big problem' lackey.

Shorting is the headline folks.The main game is not shorting - bad debts are being socialised and the US taxpayer is picking up the bill. Come again? Then again it is the US consumer that was driving this little asset bubble, lapping up debt to pay for their MacMansions and assorted gizmos. Maybe it is right that they lose their tax cuts to pay for it.

As an aside, an Italian minister was quoted today as saying that Alan Greenspan will go down as being behind only the chief 'Evil Doer' in harming the American people!

 

[wayneL]

OMG.. WayneL i just noticed your avatar and name ..i didn't realise you were an evil short seller! Do you have any distinguishing features that might alert unsuspecting longs as to your true intentions? Perhaps a desire to eat children, assassinate the Queen, eat the livers of dead sheep....or God forbid ....vote liberal

hahaha!

The only real way to tell is the increasing bank account as the market turns to shyte. :batman:

Gotta fly under the radar.

 

[cordelia]

This thread is evidence that Dubya has found his new terrorists! Classic. A decoy and everyone laps it up. Goebbels had nothing on Paulson and his 'it is a big problem' lackey.

Shorting is the headline folks.The main game is not shorting - bad debts are being socialised and the US taxpayer is picking up the bill. Come again? Then again it is the US consumer that was driving this little asset bubble, lapping up debt to pay for their MacMansions and assorted gizmos. Maybe it is right that they lose their tax cuts to pay for it.

As an aside, an Italian minister was quoted today as saying that Alan Greenspan will go down as being behind only the chief 'Evil Doer' in harming the American people!

yep your right ..shorting is the decoy....

 

[cordelia]

This thread is evidence that Dubya has found his new terrorists! Classic. A decoy and everyone laps it up. Goebbels had nothing on Paulson and his 'it is a big problem' lackey.

Shorting is the headline folks.The main game is not shorting - bad debts are being socialised and the US taxpayer is picking up the bill. Come again? Then again it is the US consumer that was driving this little asset bubble, lapping up debt to pay for their MacMansions and assorted gizmos. Maybe it is right that they lose their tax cuts to pay for it.

As an aside, an Italian minister was quoted today as saying that Alan Greenspan will go down as being behind only the chief 'Evil Doer' in harming the American people!

What or who is Dubya?

have fun everyone ..learn to love each other..its far more pleasant

 

[It's Snake Pliskin]

yep your right ..shorting is the decoy....

In Planet of the Apes they did to the astronaughts what they did to Jack Nicholson in One Flew over the Cukoos Nest. I hope the anti short selling Apes don't do that to the people who display a little intelligence.

Seriously though, if you look through history there are decoys everywhere.

 

[wayneL]

In Planet of the Apes they did to the astronaughts what they did to Jack Nicholson in One Flew over the Cukoos Nest. I hope the anti short selling Apes don't do that to the people who display a little intelligence.

Seriously though, if you look through history there are decoys everywhere.

Yes indeed.

 

[cuttlefish]

What or who is Dubya?

George W (i.e. 'Dubya')

 

[James Austin]

just seen the dow, dn 370 pnts overnight.

how did that happen, without shorters in the market?

perhaps its a fundamental issue after all!

 

[Struzball]

just seen the dow, dn 370 pnts overnight.

how did that happen, without shorters in the market?

perhaps its a fundamental issue after all!

Seems to not make a difference, just now means that nobody will be able to PROFIT from it!