Short the SEC

This is simply outrageous. The WSJ article isn’t clear on what will happen. It appears that the SEC is merely considering a ban of shorting, but it’s far from a done deal.
This is so ridiculous, so delusional, that I can’t believe it has a prayer of really happening. Banning short-selling? Are they kidding me? The backlash would be overwhelming. At least, I hope it would be. The SEC would be denounced by every major financial organization on the planet.
Short-selling is the free speech of Wall Street.
Half the computer models on Wall Street would explode! Consider this:

About a third of U.S. equities trading is already being done using algorithmic trading, with that figure expected to soar to more than 50 percent by 2010, said Brad Bailey, a senior analyst at the Boston-based researcher Aite Group. “I’m even afraid I’m underestimating that number,” Bailey said.

Posted by on September 18th, 2008 at 10:12 pm


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