The Government... Wrong Again
Look, they're coming after the wrong people.
Obviously, if people are spreading false rumors about a stock in order to send it down, that's wrong. However, it's just plain stupid to ban short selling.
How about this? Instead of focusing on the short sellers, try focusing on what made this mess possible in the first place. Companies being over-leveraged... how about the moral hazard created by our government? Let's ban moral hazard you fuckers!
I can think of a thousand different places to fix (financial media) before I tinker with the rules of the stock market, which have worked pretty well these last couple hundred years.
Oh, and lets not forget this. You take shorts out of stocks and kiss goodbye explosive short squeezes... those are some of the best rallies (like today's 400 point rally) that you can get!
UPDATE: The link on my blogroll called "Short Squeeze" will come in very handy today. For example, GHL... based on its average daily volume, it would take almost 35 days for all the shorts to cover.
Also, if you have a lot of long exposure to this market, today might be a good day to consider some off.
3 comments:
I tried to get in BCS and BAC yesterday without luck and they are skyrocketing in pre-market. GS and MS are already upo 30%
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Also, if you have a lot of long exposure to this market, today might be a good day to consider some off.
Do you mean - take the profit? Thanks.
>>UPDATE: The link on my blogroll called "Short Squeeze" will come in very handy today. For example, GHL... based on its average daily volume, it would take almost 35 days for all the shorts to cover.
Ok - sorry if this is a stupid question but - are you saying that buying ghl might be a good strategy because of high short ratio and there is going to be a short squeeze? Just trying to understand. I hope I get some good profit today.
Yes... this rule will scare the shit out of shorts. They are "nuking" the shorts.
Shorts will scramble to cover. There will at least be short term spikes in some of the names that have high short interests.
-DT
Awesome. The disease spread faster than I had expected. This is totally a poison pill given by government to short sellers - at least for time being. Thanks DT for the explanation - and timely posts.
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