Quote from jficquette:
I agree. I was going to post that this is a misunderstanding. You can stop short selling because its how financial companies hedge their longs. The Option markets couldn't function because you couldn't buy a call. Insurance companies couldn't have variable annuities because they couldn't hedge. Insurance is the foundation of banking, banking is the foundation of the economy and the economy runs the markets.
Its ain't going to happen. Why lift the uptick rule then ban it all together?? The people who got the uptick rule cancelled were convinced based on studies that it wouldn't affect the market. I don't see these same people now saying banning it will do any good.
Chinese markets have fallen 70% and short selling is illegal there. We ban it here and the markets will tank after the shorts get out (after the cover rally) because no shorts are there to take profits
John