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.