U.K. Proposed Ban on Shorting Financials Until JANUARY

Quote from CPTrader:

I suggested this yesterday to some friends, because the current action in financial stocks is akin to financial terrorism. The shorts are creating a self-fulfilling prophecy.

I'm a free market purist...but short sellers should not be allowed to force viable companies to become bankrupt.

The SEC should immediately follow the FSA's lead. and reverse the 2004 exemption that led to this excessive leverage. They should force the Ibanks to revert to pre-2004 leverage limits, at which point the ban of short sales of their stocks should be reversed.
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What total nonsense. How exactly do short sellers cause "financial terrorism?" They're helping to discover the true market price of these stocks, which is evidently zero.

Do you understand that, in the case of LEH, literally anybody in the world with the cash and the will could have bought it at a fire-sale price on Sunday? Nobody wanted to buy, at any price. Not BoA, not the Chinese, not Barclays, not Abu Dhabi, nobody. If anything there is not enough short selling as LEH stock should've been going for pennies weeks or months ago.
 
Quote from just21:

The temporary US ban on short selling, in 19 financial stocks, worked in the summer. BOA rallied 50%.
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How can you say it "worked" when you don't know what would have happened otherwise?

Every short seller must eventually buy the shares back, unless they pick a real loser (like LEH) that can't even squeeze by with government support and earnings manipulation.
 
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