Posted by cwallace123 on 9th of Jul 2015 at 04:37 pm
Banning Short Selling would be a bad Idea IMO, because all
short-sales must be covered. However, what would happen in the case
of banning short selling, is that short sellers, would be replaced
by outright sellers. This is another example of 'the road to
hell is paved with good intentions'. Markets need to be allowed to
breathe, markets expand and contract, ebb and flow, just like
anything else in nature, and whenever governments or central banks
get involved it only makes the ultimate outcome even worse.
JMO.
Short Selling
US - Under Intense Cyber Attack...
Posted by cwallace123 on 9th of Jul 2015 at 04:37 pm
Banning Short Selling would be a bad Idea IMO, because all short-sales must be covered. However, what would happen in the case of banning short selling, is that short sellers, would be replaced by outright sellers. This is another example of 'the road to hell is paved with good intentions'. Markets need to be allowed to breathe, markets expand and contract, ebb and flow, just like anything else in nature, and whenever governments or central banks get involved it only makes the ultimate outcome even worse. JMO.
http://www.elliottwave.com/freeupdates/archives/2010/09/23/Ban-on-Short-Selling-Are-European-Market-Now-Safe.aspx#axzz3fQcDHja9
http://www.elliottwave.com/freeupdates/archives/2012/08/09/Do-Bans-on-Short-Selling-Work-See-for-Yourself.aspx#axzz3fQcDHja