Should shorting be suspended/banned?

[chops_a_must]

Most of the posts here appear to be basically founded in greed.

I haven't traded in a while, so how are my posts based on greed? Nothing that has been done has affected my financial position.

A market which rockets up and down way out of proportion to any sensible valuation of the stocks is great for stock traders but not much good for anyone else in society.

Yet the people who support banning of shorts somehow aren't greedy if valuations start going through the roof, like they did, rather than going through the floor?

 

[It's Snake Pliskin]

http://business.theage.com.au/business/fbi-probes-finance-giants-for-fraud-20080924-4n0f.html

Perhaps the FBI is not bearish on shorters.

 

[nioka]

????

Nioka,
Why don't you answer the oil question? Enough here are interested in the ethical answers of the ethical?

Still thinking, thinking, thinking. ( got to keep you guessing a little longer, a moron doesn't have time to have an immediate answer to everything. Got to think of maintaining the image and I'm very busy trying to digest the other rubbish thrown at me. Then there is the fishing and the garden taking first place. Ah, it's a busy world.)

 

[Kremmen]

And the talk of greed - we are all operating a trading business. Im sure you would take whatever profits came your way.

Definitely. I've even played Centro roulette, mostly getting their immediate future direction right. The stock market, however, is not a computer game with no ramifications in the real world. What I mean by greed is those who say shorting should continue because it's always been part of "the game" and don't care what happens to the companies. The collapse of parts of our financial markets matters to everyone and I believe it's very blinkered to expect governments to sit back and watch it happen. I'm surprised they didn't intervene sooner.... And it would have been better if they had intervened in a way which showed that they have some well-thought-out plan of action.

 

[prawn_86]

One could argue that the entire fault lies with govs. If ASIC and the ACCC actually had the manpower and legal power to enforce rules, then there would not have been the dodgy practices which caused the shorters to move in in the first place.

As others have said, try shorting a fundamentally sound company and see how far you get...

 

[shares]

You cannot blame short sellers for the current market conditions. The Aussie market is going down because of the plethora of real, bad financial news affecting global markets.

Yes, short selling does apply some downward pressure to the markets, but so what? The sharemarket does not exclusively go up. As soon as bad news hits the markets again, we're going to go down whether short selling is allowed or outlawed. If good news were to be released, then short sellers will be making massive losses on rebounding stocks and everyone will be happy again

 

[wayneL]

Still thinking, thinking, thinking. ( got to keep you guessing a little longer, a moron doesn't have time to have an immediate answer to everything. Got to think of maintaining the image and I'm very busy trying to digest the other rubbish thrown at me. Then there is the fishing and the garden taking first place. Ah, it's a busy world.)

While you're thinking, you can think about whether S&P500 0r SPI futures should be allowed to be shorted.

So far no ban supporters have been willing to answer that one either.

 

[noirua]

Oh really?

Perhaps you can answer this question: Should the shorting of S&P 500 futures be banned. Is shorting the futures "an unacceptable face of capitalism"?

Shorting S&P futures is really gambling and is far removed from investing. It is unacceptable in an investment arena.

 

[wayneL]

Shorting S&P futures is really gambling and is far removed from investing. It is unacceptable in an investment arena.

OK, next question. Do you think buying sp futures is really gambling and is far removed from investing and unacceptable in an investment arena?

 

[mazzatelli1000]

Shorting S&P futures is really gambling and is far removed from investing. It is unacceptable in an investment arena.

Following that interpretation, investing is also a gamble whether the share price will go up. Your just gambling with more time on your side *rolls eyes*

 

[skyQuake]

Shorting S&P futures is really gambling and is far removed from investing. It is unacceptable in an investment arena.

How about when u long the future contract?

 

[nioka]

OK, next question. Do you think buying sp futures is really gambling and is far removed from investing and unacceptable in an investment arena?

Maybe it is a business to be conducted on the TAB or at Jupiters on the Coast!!!!!!!! (Don't reply asking why or I'll have to start thinking, thinking, thinking.)

 

[Trembling Hand]

Maybe it is a business to be conducted on the TAB or at Jupiters on the Coast!!!!!!!!

LOL it is!! its called a futures exchange and its the same as a stock exchange except the punters in the stock exchange think they are "sophisticated investors". :sheep:

 

[wayneL]

Maybe it is a business to be conducted on the TAB or at Jupiters on the Coast!!!!!!!! (Don't reply asking why or I'll have to start thinking, thinking, thinking.)

OK so let me get this straight:

Buying a basket of 500 shares as represented by the sp500 is legitimate investing, to be conducted by responsible, suited and respectable businessmen and women, in a city building designed for the purpose.

Entering into a contact to buy the same basket of shares (but cash settled) and therefore financially the equivalent risks and rewards (but with far less brokerage costs), is gambling that should be conducted by spivs and wallies in a casino.

Is this what you are saying?

 

[nioka]

punters in the stock exchange think they are "sophisticated investors". :

I believe there is a definition of a sophisticated investor. To qualify you have to have made a taxable profit from investing in shares of a minimum of $250,000 for the past 2 years. I guess there are a number of exsophisticated investors today. Companies dealing with sophisticated investors don't have to make the same disclosures to them as they are obliged to do for the other investors.

Wayne, Actually I said maybe so I leave it to others to start thinking about 'Why not". Why is it up to me to have all the answers.

 

[wayneL]

Wayne, Actually I said maybe so I leave it to others to start thinking about 'Why not". Why is it up to me to have all the answers.

Strong views require some justification, otherwise it looks like those views are based on ignorance.

Still waiting for answers from others too, BTW.

 

[skyQuake]

Classify it as gambling then, that's fine with me! No more capital gains tax or pesky accounting rules.

 

[Naked shorts]

Classify it as gambling then, that's fine with me! No more capital gains tax or pesky accounting rules.

Hahahaha! :

@ Kremmen
Ever heard the speech "Greed is Good"?

It may be a pitty that greedy traders are doing something unproductive, but don't hate the player, hate the game. Not all companies need to go public you know...

 

[nioka]

Classify it as gambling then, that's fine with me! No more capital gains tax or pesky accounting rules.

That is the best suggestion to come from this topic so far.

OOps. A player won't be able to write off losses. Not such a good idea after all.

 

[It's Snake Pliskin]

Still thinking, thinking, thinking. ( got to keep you guessing a little longer, a moron doesn't have time to have an immediate answer to everything. Got to think of maintaining the image and I'm very busy trying to digest the other rubbish thrown at me. Then there is the fishing and the garden taking first place. Ah, it's a busy world.)

Nioka,

It is quite clear you won't answer any questions which is your choice. I don't think you are a moron, but according to the quality of your latest thread just a stirer.

So long.