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Us too, us too


 

I can’t believe regulators in Canada are even considering following suit with the U.K. and the U.S. and banning short sellers, but they are, according to the Globe and Mail. It’s “under discussion” says Paul Bourque, senior vice-president of enforcement, policy and registration of the Investment Industry Regulatory Organization of Canada. That would be the self regulatory body made up of many of the financial firms who’s stock prices would benefit from a ban on shorts.

This is astonishing. Canadian financial firms have not been under any of the same pressures that U.S. firms have. And even if they had, banning short sales does nothing but create an artificially-inflated market. Traders and analysts are cheering today’s gains. It’s like watching someone pump a balloon full of helium and cut the string that’s keeping it tethered, and then marveling as it takes flight.


 

Us too, us too

  1. Alan Greenspan would not agree that suspending short sellers would be any way helpful. He argued on George Stephanopolous sunday that short sellers help to clarify price and that markets will remain unstable until prices are clarified.

    http://www.kontrol.ca

  2. Doesn’t it boil down to whether or not wealth created through stocks should be directly representative of goods and services, rather than abstract quantities related to stocks (hedge funds/derivatives)? And whether people put money up front for their purchases (in general), instead of “borrowing” funds for short sells (in particular)?

    Austin

  3. i think we need more than the suspension of short sellers to save the situation, we need to restore the inevstor’s confidence

  4. Suspending short selling is a scam that gives deep pockets yet another advantage.

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