Quote from kitty1996:
why such a negative point toward this breaking news?
i've been very negative toward the SEC & the US gov't for that matter....(even with the naked shorting news yesterday).
but i must admit this morning with the "ban short selling for 799 financials), i am impressed with the SEC. this is an incredible historic move by them.
Ugh... are you kidding? Read through this whole thread from start to finish and maybe you'll see why...
Some key points:
Price discovery is no longer available... market decides the price, this takes that away.
No way to hedge to risk, unless you want to do it with options.
Short covers help catch free falls.
You can only be on one side of the market now, and this will dry up liquidity.
And countless other factors that derive from these basics and other more complex trading and vehicles for such.
In the end, it doesn't matter what happens, someone has to pay... money might be created out of thin air, but not without consequence. This is, and all the other intervention is not a solution, it will just make it feel like you got jabbed 20 times instead of a single haymaker. Same damage in the end, just not as shocking. Maybe it works better, but it sure as hell ain't free markets... it's simply a puppet now.
