I applaud the SEC's courageous move to ban short selling. Isn't that brilliant? I wonder why they didn't think of that during the Great Depression.
However, I feel that this valiant effort does not go far enough.
All selling of stocks should be banned. Once you buy a stock, you have to hold it forever.
Sure, this might make the market a little less liquid. But once stock prices can only go up, we'll all be rich!
Or maybe we should just try something simpler: pass a law making it illegal for stock prices to go down.
Now that the shorting ban is over, the question is did it work? Did it help? Or did it just power-drive the market even lower as traders abandoned longs they would have otherwise kept? And did really increase transaction costs by more than 40%?
I applaud the SEC's courageous move to ban short selling. Isn't that brilliant? I wonder why they didn't think of that during the Great Depression.
However, I feel that this valiant effort does not go far enough.
All selling of stocks should be banned. Once you buy a stock, you have to hold it forever.
Sure, this might make the market a little less liquid. But once stock prices can only go up, we'll all be rich!
Or maybe we should just try something simpler: pass a law making it illegal for stock prices to go down.