SEC Will Ban Short Selling: America's Leaders Break Down [View article]
How is this any different than Nixon's wage and price controls in the 1970's that led to crushing inflation? How can you have a healthy market if only one side is allowed to trade? I can't even think of a good example that explains how bad this is. Basically, the government is taking over the free market (if it truly exists) and telling every business they can't lower prices to attract buyers. This is going to create yet another artificial bubble that is going to inflate very quickly due to short interest, but when the rule lifted, likely lead to crash of epic size.
Each solution the Treasury and Fed have come up with this year has been worse than the last. Lowering rates, printing money, creating inflation - and still the markets are locked as they were months ago. Does anyone think this will correct the underlying problems of poorly priced assets and bad debt? No, this is playing with the sticker price only.
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How is this any different than Nixon's wage and price controls in the 1970's that led to crushing inflation? How can you have a healthy market if only one side is allowed to trade? I can't even think of a good example that explains how bad this is. Basically, the government is taking over the free market (if it truly exists) and telling every business they can't lower prices to attract buyers. This is going to create yet another artificial bubble that is going to inflate very quickly due to short interest, but when the rule lifted, likely lead to crash of epic size.
Sep 19 02:43 am
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All Comments by ptgkc »SEC Will Ban Short Selling: America's Leaders Break Down [View article]
Each solution the Treasury and Fed have come up with this year has been worse than the last. Lowering rates, printing money, creating inflation - and still the markets are locked as they were months ago. Does anyone think this will correct the underlying problems of poorly priced assets and bad debt? No, this is playing with the sticker price only.