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SEC bans short selling on financials.

This morning the SEC decided to ban all short selling on 799 financial stocks proving yet again we don’t live in a free market.  Over at OpenMarket.org John Berlau explains why short sellers are unsung heroes. The money quote:

If ever there were a case “killing the messenger,” this would be it. As a commentator on CNBC’s “Fast Money,” pointed out Thursday night, a successful short seller isn’t someone who falsely shouts fire in a theater; it’s instead the person who first notices the theater is on fire.


Dustin Anderson is the owner, editor, and main contributor of TheUnspunZone.com. If you have a question or an interesting topic to share feel free to email Dustin or visit Dustin's website.

Posted in Economics, Markets, & Trade.

By Dustin Anderson
September 19, 2008

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Continuing the Discussion

  1. OpenMarket.org » Archive » Trillion Dollar Bailout Will Lead to Future Bubbles linked to this post on September 19, 2008

    [...] the people who warned against the housing and financial bubbles, the Administration is now cracking on short-sellers, the people who accurately predict that risky assets are overpriced.  “This morning the SEC decided to ban all short selling on 799 financial stocks proving yet [...]

  2. Where were the long bans? | The Unspun Zone linked to this post on September 19, 2008

    [...] that the SEC has banned short selling on 799 financial related stocks it makes one think about the situation further. Several questions come to mind: why ban short [...]

  3. TRILLION DOLLAR BAIL NOT GOING TO BE GOOD ENOUGHT « WAKE UP AMERICA linked to this post on September 22, 2008

    [...] the people who warned against the housing and financial bubbles, the Administration is now cracking down on short-sellers, the people who accurately predict that risky assets are overpriced.  “This morning the SEC decided to ban all short selling on 799 financial stocks proving yet [...]

  4. OpenMarket.org » Archive » Bailout Bill Dangerous, Inflationary, Unnecessary, and Unconstitutional linked to this post on September 23, 2008

    [...] SEC’s foolish ban on short-selling, a classic example of shooting the messenger, has now backfired, with people worried about the market falling investing in commodities like gold [...]

  5. OpenMarket.org » Archive » Cost of Bailout Gets Bigger; SEC Regulation Backfires linked to this post on September 23, 2008

    [...] SEC’s foolish ban on short-selling, a classic example of shooting the messenger, has now backfired, with people worried about the market falling investing in commodities like gold [...]

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