09-18-2008, 07:08 PM
rgG wrote:
VDP, I heard earlier today that the British version of our SEC (Securities and Exchange Commission) was banning the short selling of US financial institutions until sometime in January.
I might be wrong but as far as I heard it was short selling of any financial stock is to be curtailed until January although it will be reviewed after 30 days.
Also:
"US stock market regulators also announced new rules this week aimed at curbing speculative "naked short" sales that aim to profit from falling share prices. Short sales are designed to profit from a declining share price by an investor or broker arranging a sale of a share he does not own but has been "borrowed" on an agreement to return the share at a future date."
When the world's finances are good then short selling doesn't show up so much but when things are not so good then it can greatly exacerbate the situation.