Traders go short on Lloyds

[Moscow Mule]

Is it time for this song again? This jukebox needs updating with some new tunes...

[AtW]

Here's one for ya, from the SEC chief who introduced the short selling ban for 3 weeks::

http://www.reuters.com/article/ousiv...4BU3FL20081231

And? The job of SEC is to keep boys in the market happy, they are hardly unbiased organisation that would have to disband if proper controls are established.

This is not just about short selling - this is a side effect of speculative cancer that has completely overwhelmed markets.

People or companies should ONLY be buying shares if they are prepared to hold them for dividends or growth in value over 2-3 years period, with minimum being 1 year.

[EternalOptimist]

How about you cheer us all up with some BIG SKA NEWS?

Last week I borrowed six paragraphs of BIG SKA NEWS while they were cheap, next week I will sell when the value goes up.
Hey presto , massive wonga and I have the privilege of being the first westerner to short Alexi

[snaw]

And? The job of SEC is to keep boys in the market happy, they are hardly unbiased organisation that would have to disband if proper controls are established.

This is not just about short selling - this is a side effect of speculative cancer that has completely overwhelmed markets.

People or companies should ONLY be buying shares if they are prepared to hold them for dividends or growth in value over 2-3 years period, with minimum being 1 year.

Really?

So when I buy my shares in BP a month ago, and they have a major incident incident that will cause them to lose a shedload of money in the next few years, in your world I have to hang on to them and watch my investement pour down the drain?

Because essentially that's how share price works, they go up and down based on economic data,company news etc. But in your version of the world all that stuff is irrelevant because I'm not allowed to sell, so I've just made an even bigger gamble than maybe I intended on ...

[HairyArsedBloke]

And? The job of SEC is to keep boys in the market happy, they are hardly unbiased organisation that would have to disband if proper controls are established.

This is not just about short selling - this is a side effect of speculative cancer that has completely overwhelmed markets.

People or companies should ONLY be buying shares if they are prepared to hold them for dividends or growth in value over 2-3 years period, with minimum being 1 year.

So holding a short on the Euro FX Future (a derivative) from my base in a tax haven for less than ten seconds would be a bit naughty then?

[Pondlife]

So when I buy my shares in BP a month ago

But who would you buy them from since no one will be selling on pain of 110% tax or a gaol sentence.

[snaw]

But who would you buy them from since no one will be selling on pain of 110% tax or a gaol sentence.

I'll write to get a special letter of dispensation from God Emperor AtW, Economic master of the universe.

Funny thing is he doesn't actually realise how dumb this kind of BS makes him sound, yet he thinks we'll somehow take him seriously when it comes to economic conversations.

[AtW]

So when I buy my shares in BP a month ago, and they have a major incident incident that will cause them to lose a shedload of money in the next few years, in your world I have to hang on to them and watch my investement pour down the drain?

You should be able to sell it but any profits you make from holding them for such a short time should be taxed at 100% level, possibly higher to make sure you stick with the company you invest into or don't get into investment at all.

Because essentially that's how share price works, they go up and down based on economic data,company news etc. But in your version of the world all that stuff is irrelevant because I'm not allowed to sell, so I've just made an even bigger gamble than maybe I intended on ...

Unsurprisingly you are missing the main point of stock market - it's purpose was NOT just to make investors rich, it was to support investment into companies that can grow and benefit society through wealth generation. As soon as this part of the mission is removed (like it is now in the City), then stock market loses it's purposes and turns into electronic casino.

I don't have a problem with people gambling their own money in a casino, that's fine if you get your legs broken for losing out, the problem I have is when banks gamble other people's money without their permission and then cause massive problems for everyone.

[Andy2]

Shorting is as wrong as going long on a share

Having said that it's wrong for investment bankers and hedgies with their billions ,to indulge in naked shorting to the point of making a company go bust

Oil price of $147 last year has proven to be a result of speculation by these guys

[AtW]

So holding a short on the Euro FX Future (a derivative) from my base in a tax haven for less than ten seconds would be a bit naughty then?

It should be discouraged.

It is ok to hedge against currency movements, not a problem - the problem if it becomes profit generation, it's the same thing like with insurance - the objective of it is to reduce losses, NOT to make you money.