Another Ban on Short Selling?
I've read recently that Chris Cox of the SEC has met with other country's counterparts and have discussed the possibility of further limitations of short selling specifically to financial institutions. Before I go on a rant about why this amounts to economic fascism, I found an interesting article that presents a balanced view of short selliing. The article came about because last week the CEO of Citigroup Vikram Pandit blamed short sellers for the bank's problems. This type of excuse always tends to sound alarm bells and reminds me from Hamlet:
Queen:
The lady doth protest too much, methinks.
Here's the article.
Labels: short selling
1 Comments:
Since the beginning of this crisis, I haven't heard one positive comment about Cox @SEC. Most commentators say he's a lightweight in way over his head.
The common wisdom says reinstate the "uptick rule" and slow down the run on certain stocks. Much more reasonable than hijacking the capital markets by prohibiting shorts!
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