Thread: Short selling comes back today

There are 10,000 active hedge funds, most of whom have lost a great deal from the short selling ban. When it is lifted, they will pick off a medium sized bank or two, driving them into bankruptcy by next week sometime. Like a pack of hungry wolves, they will surround the weaker members of the herd and tear them apart so that they may profit from their demise.

The concept of short selling was always about betting that a stock will fall. With so many hedge funds, they now have the ability to make it fall when it would not have done so otherwise. The technique has become a form of market manipulation. I suspect that by the end of the year, they will have caused enough carnage that a howl will go up - all over the world - and proposals to permanently ban short selling, in all forms and variations will come forward. Perhaps it is time.

To short sell, they still have to borrow. So let's see if they can actually get the margins they want.

Originally Posted by fabijo

To short sell, they still have to borrow. So let's see if they can actually get the margins they want.

This is where I have trouble with hedge funds shorting, they always do it "naked" (no money down). If you really believe in a short you should put real money down. "No Money Down" only works for cars and other assets, you can take those away.

General Motors Corp (NYSE:GM - News) shares fell as much as 21.6 percent to their lowest level since 1950 on Thursday amid financial market turmoil and the car maker's report of European sales declines through the first nine months of 2008.

An investment banker who declined to be identified attributed the share decline to elimination of short-selling restrictions on the shares that had put the equity value out of balance with bond and credit-default swaps values.

http://biz.yahoo.com/rb/081009/busin...ares.html?.v=1

Originally Posted by Pilgrim

General Motors Corp (NYSE:GM - News) shares fell as much as 21.6 percent to their lowest level since 1950 on Thursday amid financial market turmoil and the car maker's report of European sales declines through the first nine months of 2008.

An investment banker who declined to be identified attributed the share decline to elimination of short-selling restrictions on the shares that had put the equity value out of balance with bond and credit-default swaps values.

http://biz.yahoo.com/rb/081009/busin...ares.html?.v=1

And the shorts are BACK with a vengence. Just look around.

Can you sell short with Scottrade (or similar) ?

Originally Posted by Mike vB

Can you sell short with Scottrade (or similar) ?

With Scottrade.......
Yes a person may sell short, you must have an options account and have adequate reserves....depending on how much you wish to sell.

Originally Posted by James48843

And don't forget this- "Short Selling" that was banned by SEC two weeks ago- the ban ends at 11:59 pm tonight.

Keep your eye on the market overnight tonight- Let's see what happens.

Here is the SEC's press annoucement on the end of the ban:

Statement of SEC Division of Trading and Markets

FOR IMMEDIATE RELEASE
2008-238

Washington, D.C., Oct. 3, 2008 — The SEC’s Division of Trading and Markets today made the following statement:

On Friday, October 3, 2008, the President signed the historic Emergency Economic Stabilization Act of 2008 (H.R. 1424), aimed at stemming the credit crisis. Accordingly, the Commission’s Emergency Order that prohibits persons from selling short the securities of financial institutions will expire at 11:59 p.m. ET on Wednesday, October 8, 2008.

good time 2 get some FAZ buddy...esp if ya see an obama rally (which i really doubt)

Originally Posted by teknobucks

good time 2 get some FAZ buddy...esp if ya see an obama rally (which i really doubt)

Didn't think I'd ever see you back here again.

Stop in every once in a while!