Ban on Short Sales

September 18th, 2008 9:19 pm | by John Jansen |

The Wall Street Journal is reporting that the SEC will propose a temporary ban on short sales.

I want to know why there was not a ban on long purchases in 1999 and 2000.

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  1. 11 Responses to “Ban on Short Sales”

  2. By JLA on Sep 19, 2008 | Reply

    Hey, why not? It’s worked so well in Shanghai.

  3. By Squeeze on Sep 19, 2008 | Reply

    Sorry JLA, What worked well in shangai ? Is there a short selling ban in Shangai too ?

  4. By PPL on Sep 19, 2008 | Reply

    There is not short selling in Shanghai market. Only long stock is allowed, but the market is still sinking. The regulation or “rule change” Here is only for the special interest. When the unreasonable profits were made, where is the regulation?

  5. By JQ on Sep 19, 2008 | Reply

    There is no short selling in Chinese market, but the stock index already dropped 70%

  6. By falcon on Sep 19, 2008 | Reply

    Squeeze, can’t you tell the sarcasm?? and yes, China prohibits short selling for years.

  7. By festerpig on Sep 19, 2008 | Reply

    So did the UK – on the very same day and at the height of global panic, the FSA banned short selling temporarily (3 months?) citing extreme market conditions.

  8. By ponzi_killer on Sep 19, 2008 | Reply

    My new retirement plan? Gold, Silver, Guns, and Ammo

  9. By anon on Sep 19, 2008 | Reply

    Keep us posted today on the price action for CDS on U.S. Treasuries.

  10. By Squeeze on Sep 19, 2008 | Reply

    Thanks.

    I see FTSE up 9%. Thats MASSIVE.

    Pls tell me if this is (one off) short covering or usual buying ?

  11. By festerpig on Sep 19, 2008 | Reply

    My bet is this has more short covering than usual buying. I believe today is US stock options expiry – add the ban on short selling effective today – just add one to one.

    John – I can see the yield curve flatten out big time. But has the TED spread collapsed as a result of all these developments?

  12. By Fullcarry on Sep 19, 2008 | Reply

    WOW! 2 year note down 40 ticks.

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