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I don't know how old you are, but the US might go bankrupt before you reach your retirement, more and more people are starting to see that. Therefore, like always in trading, don't bet everything on one horse but move some of your retirement money to Asia and Europe as well.

You see, banning short selling is not helping at all. Any market professional knows. The SEC knows, at least, they ought to know. So why did the SEC come up with that rule if they know it's not helping ? They simply had to do SOMETHING. They have to let mr. Bush know that they're 'on top of...

I don't have a problem with a hedgefund buying 5 million shares in an illiquid stock, causing a 10% run up and then a 10% tank (ore even more), since THAT is what happens if you close EOD. In fact, I'm thankful since they've caused good opportunities for a beautiful short, if you're paying...

And btw, what people like you fail to see, Patchie, is that if FNM and FRE would have had some value, the whole tank would never have happened, smart people would have stood up and would have started to fight the shorters and squeeze them. In the end, it's all about value. If you keep on selling...

Of course. But If i sell a million on some illiquid stock and you as a investor, use that to your advantage and pick it up cheap, I'll end up losing because I'll have to cover at higher prices since you as an investor took shares out of the market. Patchie, my point is simply that you fail to...

Not sure how all this relates to my statement that, regardless of your volume, starting flat and ending flat = 0 net market impact.

I'm not under that impression. Compared to a hedgefund, any daytrader is noise. But I wasn't comparing myself or any daytrader to a hedgefund, I was merely saying that the basics of daytrading are the same, regardless of your BP: whether you short a hundred, thousand, a million or 100 million...

And wouldn't it be possible that in this huge bear market, the stock would have tanked 10% without the whole scam ?

So you're saying that if you have enough buying power, you can cause *inter* day market movement, EVEN if you flatten out EOD ? I strongly, STRONGLY doubt that. Take an illiquid stock. Short a million shares. You'll see people join you, you'll see people will start selling too once you break...

Although I didnt start this thread to start an 'anti/pro' shorting discussion, I'd like to comment on this. I disagree here. The SEC is worried about hedge funds 'abusing' short selling by having no intention to deliver the shares. Eg, they don't have any plans to buy the stock back. This is...

I'm selling a stock today that I don't own. On settlement date (T+3) my BD has to deliver the shares to the guy that I've sold them to. If my BD doesn't have any shares, they must borrow them somewhere. If they don't have any shares and can't borrow them, they 'fail to deliver' and now under...

As we all know, the SEC created a new set of rules for shorting on september 17. After that, they created additional rules prohibiting the shorting of financial stocks, but I want to talk about the 'general' rules, as they were created on september 17. In particular about this one...

US debt is 65% of GDP, which is not much more than canada or germany. Italy is at 100%. So that puts it in perspective.

I can't find it anywhere. Everybody knows the US has only debts. Now, Paulson is going to spend 700 billion (total US debt is about 10 trillion right now, so that's an increase of 7 % of the total us debt). Ok, so where is he going to get it ? Is China going to finance it ? Or are they just...

The man has some points. He's right, technically the US is already bankrupt. And yes, whether that will happen, is up to the foreigners (asians), who supplied the money. And yes, there's almost no production in the US, the US is a consumption economy. But he's wrong on one big, major point...

Mortgages were sold to people, knowing they would never be able to pay them back. Credits were given, without any questions. Of course, this HAD to go wrong and so it did, banks lost billions of dollars. So how come, the SEC is pointing their fingers at us, the traders, like WE are the bad guys...

I heard FED is afraid of inflation and is going to raise interest tomorrow with 50 bp. Anyone long will get demolished tomorrow. I've seen this movie before. :)

@ Cutten: If the FED would bail them out, the us gvt debt wouldnt increase. If the US gvt would bail them out, it would have to lend the money from the FED and the us gvt debt WOULD increase. So that's why I said that it's a 'huge difference'.

The FED is 100% owned and controlled by the banks, not by the government. Also check the quote from Poole: FED's Poole is talking about the government = congress, which is NOT the FED. Therefore, it's not the FED's money. It's a HUGE difference. The FED is allowed to print its own money, the...

The government didnt bail out Bear Stearns. They got some help from the FED and then JPmorgan bought it (again facilitated by the FED). But the government had absolutely nothing to do with it. So realise that this is a completely different situation. FRE & FNM are not shareholders in the FED...