Category: Short Selling, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

2 Responses to “Market Declines: What Is Accomplished by Short-Sell Ban?”

  1. denim says:

    My August 28 post still applies as to why a ban on short selling did not work. There was an equivalent investment tool that Forbes’ Investopeda has published. Those who already knew this and new readers could have applied it to short sell via put spreads:

    “Determined traders walked right around the “ban” and did not put the whole wad at risk:

    Bear Put Spreads: A Roaring Alternative To Short Selling

    http://www.investopedia.com/articles/optioninvestor/09/bear-vertical-put-spread.asp#ixzz24soQHp6s

    A case for high rates of taxing bear put spreads and short selling can be made. Traders are taking money out of the manufacturing and services sector without necessarily re-entering it. Taxpayers now foot the bill for bail outs and the unemployment benefits that must be paid to the victims of the proactive vultures.”

  2. DeDude says:

    @denim;

    Agree. Don’t ban it (even if there is no easy ways around it) – TAX IT. The sociopaths who harvest money on activities that are destructive to society are doing their dirty deeds to make money – cut the profit to where it is not worth the risk, and the sociopathic behavior will go away. Companies who just need a little time to get out of the deep water should be given a helping hand not a boot pushing their heads down. And that is the job of government since “we the people” are subsidizing these bastards by covering all the social costs of their profit taking.