9/19/2008

Hang the shorts

Lot of traders and commentators are reacting to the ban on short selling as if , it is something new. But if you study market history, this kind of reaction to short sellers is nothing new. After a panic and stock decline , there is a search for scapegoats and shorts are easy targets.
Shorts were at receiving end after the 1929 crash and public sentiment was against short sellers for years. Similarly in market across the globe from time to time short selling becomes the favorite whipping tool of regulators and politicians. At emotional level to common man it is such a simple story to sell. Shorts brought down the market or shorts lead to collapse of this company. Shorts are evil, unpatriotic, anti capitalist and so on s a easy message to sell to the public.
Market history is full of periods where the public cries out loud aided by politicians "hang the shorts".

2 comments:

Unknown said...

GIMME A FU(%ING BREAK!!!!!!!!!!!!!!!!!!!
GS CRIES FOUL WHEN THEY GET HAMMERED BY THE SAME FOLKS THEY TOOK A STICK TO???????????
utter and complete crap-they are getting what they deserve-they are part of the cause of the whole market decline-they were short in the back room while-SELLING CDO/SIV in the front room last year!!! the wall street journal says they made BILLIONS ON THE WHOLE THING! and they were not done either with the markets i am sure-they have been one of the biggest short accounts in the WHOLE MARKET!
it is a shame that all that money siphoned off of the markets the last few years is going right back to ISRAEL so they Re-build Solomon's temple on the dome of the rock in Jerusalem !!!
this is all a crime!!!!!!!!!!!!!!!!!!!!!!!!!!!
i agree NAKED short selling is wrong-especially the market makers playing games with stock prices-players should determine a stocks price(buyers and sellers) not MM and buyer, MM and seller-everyone needs to see that the MM controls the stock unless there is too much volume-so MM can now manipulate a stock to their whim depending on the parent companies decision on where they want their stock price to go to?????????-how will MM generate money for their firms if there is no volitility???-AAAARRRGHHHHHHHHHHHHHHHH
make em all walk the plank to davey jones locker!

Unknown said...

i think it was a necessary evil what they have done-almost too complicated to expound upon-they saved us-the little guy from having to live thru a depression now-thing is, eventually it will happen, because it is a fiat money system and you cannot get rid of greed-now... the little guy will not see equality with ones who were once rich-think 1929 souplines(even then though you did not see Jp Morgan and other tycoons in the lines)they have staved off finacial armegeddon so the show can continue on,rich get richer-middle class shrinks-either you get rich or decend into being poor-if there are no more bubbles to ride-i know many how have gone to cash after taking a loss-they are not able to join in on the rally because confidence has ben destroyed by the market players-now the short thing is meant to keep bulls from getting out of control-too bad too many have used it as a strategy to manipulate stocks(naked shorting and MM getting greedy-there is that greed thing) who knows if the markets need retail investors playing in their world(they have siphoned off a lot of wealth from us) we dont move the market really-only the professional outfits can do that, think GS for example-all of this disgusts me-bitter tast in my mouth-30k lost last year i am sidelined and refuse to play in these waters-the big outfits are recapitalized to drive the markets higher (they all buy eachothers shares) and the USA govt is the bagholder-WE ARE THE BAG HOLDER'S NOW-will probably lead to one world currency though