It is far better to remain silent and be thought a fool rather than speak
out and remove all doubt.
None the less, you have opted to speak
out. So let me put short shift to your hyperbole.
The SEC is
halting NAKED short selling, not short selling. Short selling is a
useful and natural feedback mechanism for markets. It is even more so when
enforced in conjuction with the uptick rule. Naked shorting OTH is
solely for speculation and not for hedging of investment positions. The
societal purpose of markets is for investors. Speculators and traders
have their place in the market to help provide liquidity. However, naked
shorting does not provide any useful or constructive function to markets and
will not be missed as it was not missed for the 150+ years it didn't exist in
the markets.
Just as margin requirements are a valid and useful market
regulator, so are balancing tools such as prohibition of naked shorting.
Boater805
At 05:55 PM 9/18/2008, you wrote:
SEC to halt short selling
What would happen if
it were:
SEC to halt Long
Buying
What's the difference
?
It is a totally biased
action on their part.