Vernon L. Smith

Bill Introduced to Reinstate the Uptick Rule

If we are going to restore the uptick rule for short sales, I thnk it is essential to also introduce a downtick rule for margin buying of equities. The primary source of downward momentum is the widespread realization that prices are too high, and of course that is the direct consequence of momentum buying. An uptick rule goes together with a downtick rule like a horse and a carriage.

Friday Options Update: VIX, XLF, MOS, POT

I bought POT in November at 47 with the idea of bulding a long term investment holding at a deep discount from long term value. Then came POT's big runup--almost double. I looked more closely to see if it was worth chasing at these higher prices. I found that POT is vulnerable to a hit in operating earning, because their quick ratio indicates that they might easily encounter a situation in which liquid assets are inadequate for meeting current liabilities. If my reading is correct, POT could go thru an agonizing reevaluation, so I sold my position but am keeping it on my watch list. Anyone else have some insight on this problem that I am missing?

Allied Irish Banks: With 9% Dividend, This Bank Could Thrive

Could David do a brief mid October update on AIB? Is it tubing because of the Iceland upheaval and the general fear that big banks in small countries cannot be effectively guaranteed by their governments in the same way as in large countries?....