April 22, 2009
Until 2008 in September when short selling was banned we had not seen the stock market crash. Since then, we have seen some of the biggest one-day falls in stock market history.
Some of the biggest scams have been discovered by short-sellers, like ENRON
Also, short-sellers provide the stock market with liquidity. When you sell a stock, someone has to be on the other side of your trade. Short-sellers buy, or "cover", when you sell, and sell when you buy. If a stock gets completely crushed overnight after announcing bad news, they are the reason for most of the buying pressure off the open, as they are covering their positions. In the case of a bankrupt stock, short-sellers can often be the only reason that you can get ANYTHING back for your virtually worthless equity position.
This proposed intervention is more lunacy that will further ruin the free market mechanism.Stop it.