bearfund

Ban on Short Sale Ends - Hold Your Breath

All the ban on shorting has done is make it impossible for anyone to make money on downward legs, and therefore reduced the supply of capital and buying pressure. The reason stocks fall in price during bear markets isn't a flood of short selling, it's a dearth of buyers. That's why you saw so many of these issues plunge in the last weeks: no one wants to take the risk of buying. Regardless of whether shorting is prohibited, no stock will rise that does not have an excess of willing buyers. Ever. The rule was stupid and I would hope that after watching some of the worst days in history enter the books under its auspices the powers that be will take the hint and not repeat their folly.