Reply to: Oh dear : FSA bans short-selling

[Dow Jones]

The long and short of it

TS, you may or may not know that long- and short-selling are both sides of the same coin. Unfortunately, the latter is much more lucrative, especially if engineered rumours start to prevail.
The HBOS downfall was caused by both shorting and unusual heavy selling by a no of institutions (most of which chose to operate via the same counterparty-often disguised-that was used for the shorting).
In my opinion and some of our traders I have spoken to, the HBOS shares should have been suspended - pending an enquiry whilst banning the practice - and - in order to prevent a potential run on savings that may have ensued - for the Gov't to intervene and buy a chunk of shares with a view of selling back when the markets have been steadied.
As SG said, the FSA once gain has proved to be a joke.

[AtW]

Let the fooking market decide who's efficient and who's not.

I don't think you even know what "efficient market" is - hint: it's not when you make shredload of money, this has nothing to do with efficiency.

http://en.wikipedia.org/wiki/Efficie...ket_hypothesis

"In finance, the efficient-market hypothesis (EMH) asserts that financial markets are "informationally efficient", or that prices on traded assets, e.g., stocks, bonds, or property, already reflect all known information."

People who short are trying to manipulate the market - it's an artificial attempt to make money from nothing at the expense of long term investors.

[ThomasSoerensen]

So in the absence of shorting is it correct to assume that financial shares will move only one way - UP

BOOMED

they have not banned selling a long position with a loss yet, have they?

[Andy2]

So in the absence of shorting is it correct to assume that financial shares will move only one way - UP

BOOMED

[sasguru]

Let the fooking market decide who's efficient and who's not.
atw can fook off back to Russia and build his utopian state.
Oh hang on, it's been tried already

[HairyArsedBloke]

Questions are being asked. FT: Alphaville: 'HBOS: Where are the shorts'.

It's going to bite the snot goblin in the

[ace00]

There are potential abuses available in all forms of transaction. Should there be a ban on buying too, because ‘speculants’ could sell at a higher price and get a profit that way?

Gordon will decide what your company is worth.

[HairyArsedBloke]

It will not put anyone off opening a long position as the way to close that position, as AtW rightly points out, is called ‘Selling’. It will harm the City in many ways; not least of all is the prospect of more, almost random and with short or no notice, introduction of regulation and restrictions.

There are potential abuses available in all forms of transaction. Should there be a ban on buying too, because ‘speculants’ could sell at a higher price and get a profit that way?

[Diver]

I'm disappointed, I was 99% certain the first thread I would see this morning would be titled "BOOMED! Markets that can only ever go up!" by DimPrawn.

Boom Is Doomed I'm afraid

HTH

[GreenerGrass]

I'm disappointed, I was 99% certain the first thread I would see this morning would be titled "BOOMED! Markets that can only ever go up!" by DimPrawn.

[ace00]

If this stays in place will it not have the opposite effect to that intended?
ie. many investors will not buy the stock as they are restricted in covering their position by shorting? And secondly will it further spook UK markets due to fear of further government intervention by Mr. G."lets sell our Gold at $250" Brown?

[AtW]

He's a city fan, men in wheelchairs is their division

Here is my brilliant solution to all Man City bitter dejected fans problems - close the shop and support the real team in the City - ManU. No shame in joining the winning team - you'd be happy as it would win, obvious solution to all problems. This would save a lot of wheelchair users from being punched too

[Bagpuss]

He's a city fan, men in wheelchairs is their division

[AtW]

I'm not going to argue with you AtW over this, as it would feel like a bit like punching a man in a wheelchair.

How do you know how it feels? Sounds like you punched someone

[Alf W]

I'm not going to argue with you AtW over this, as it would feel like a bit like punching a man in a wheelchair.