Short selling?

[snaw]

I think it does (if hedge funds complied - very hard to check), without it things would have been a lot worse in stock market.

Better explain me what exact economic purpose serves selling of stuff you don't have in order to drop share prices down so that you could make money when long term investors get raped by stop loss calls or generally feeling bad about it and having to sell?

If you don't plan on keeping shares for a long period of time you should not be buying them, full stop.

There's reams written on why it's a good thing, and keeps institutions honest.

We're not talking about market manipulation - which is an entirely different thing.

But short selling is no different to long. You're taking a position that something is overvalued, you could apply that same analogy to many things in life.

I don't really pretend to know enough about it to give a fully informed position, but I've read enough of your guff to know the same is absolutely true about your opinion as well.

[sasguru]

I think it does (if hedge funds complied - very hard to check), without it things would have been a lot worse in stock market.

Better explain me what exact economic purpose serves selling of stuff you don't have in order to drop share prices down so that you could make money when long term investors get raped by stop loss calls or generally feeling bad about it and having to sell?

If you don't plan on keeping shares for a long period of time you should not be buying them, full stop.

You don't understand market pricing mechanisms do you?
In fact you don't grasp the market at all - it's self-regulating providing everyone acts in their own self interest.
What's happening now is the market correcting itself just as it has several times in the last few hundreds of years and will do again.
You are poorly educated and not terribly bright is the problem, but you don't know it.

[AtW]

But short selling is no different to long.

Both should be banned. Leverages should not be in use at all. Only long term investments into shares should be allowed - if you want to play with shares on daily basis go to a casino.

All this would cut out 95% of City jobs, but it's something most people (not City types obviously) will accept easily, it's not City bonuses that are an issue now but the fact that City screwed everyone else who wasn't even involved in this scam.

[AtW]

it's self-regulating providing everyone acts in their own self interest.

Yeah, and the state bailouts how exactly fit into your self regulating market?

[HairyArsedBloke]

Mmmmmm now let us have a quick look as to what the 'pro's think

FT: Call to end ban on short selling
Letter to the FT: Hedge fund industry is on standby to help authorities save City of London’s status

Reuters: SEC short-sale rule stifling options trade

Reuters: Pershing Square's Ackman says short sale ban hurt

.....

[snaw]

Both should be banned. Leverages should not be in use at all. Only long term investments into shares should be allowed - if you want to play with shares on daily basis go to a casino.

All this would cut out 95% of City jobs, but it's something most people (not City types obviously) will accept easily, it's not City bonuses that are an issue now but the fact that City screwed everyone else who wasn't even involved in this scam.

Sweet Jesus, you're completely delusional.

[AtW]

FT: Call to end ban on short selling
Letter to the FT: Hedge fund industry is on standby to help authorities save City of London’s status

Reuters: SEC short-sale rule stifling options trade

Reuters: Pershing Square's Ackman says short sale ban hurt

.....

Hedge funds will save the City, yeah right.

Of course those guys are unhappy - they don't get their fix and it was their only way to make money on falling markets, something they bragged about.

With the rate of money withdrawls from hedge funds I doubt there won't be many of them left before end of 2009 - especially given how commodities are now tanking and their long positions are under threat.

[AtW]

Sweet Jesus, you're completely delusional.

snaw, you are confusing the right course of action that I propose with the world in which we live which is certainly ain't right.

[sasguru]

Yeah, and the state bailouts how exactly fit into your self regulating market?

It's the price of imperfection. No one says capitalism is perfect - but it works most of the time and history will tell you it's cyclical. It isn't the first time government will bail out the private sector and it won't be the last. Maybe that's the true function of government.
Haven't you learned the lession of "perfect" regulations yet?

[snaw]

snaw, you are confusing the right course of action that I propose with the world in which we live which is certainly ain't right.

So let me get this straight - you'd ban the buying and selling of shares on a short term basis?

And you'd do this because it's not the right course of action to do otherwise. In your opinion?