[smallpoxgirl]

SEC's ban on short selling is set to expire Thursday night. It seems pretty likely to me that the ban probably contributed to the volatility on Monday. Ordinarily short sellers would provide a floor to that sort of drop by taking profits and thereby creating buying pressure. While the ban theoretically applies only to 800 or so financial stocks, it's put a huge damper on all short selling. With my broker you now have to call if you want to do any shorting instead of just clicking the buttons.

So what is the future of short selling in America (or the world for that matter).

[EnergyUnlimited]

They will extend it.
Alternatively they will let it go for a day or two and if shortselling returned and caused fall of financial stocks again, they will reintroduce it and keep it for much longer, possibly indefinitely.

Outright ban of shortselling may well be a part of strict market regulations so much demanded by many members of this forum.

[TheDude]

The ban now covers more than financials. GE, GM, CVS, others.

The SEC chairs are Bush appointees, with advice/consent from the Senate, for what that's worth.

[americandream]

I so love the free market! I'm all in favour of the free market unless it scalps my wealth. Hehehe.

I have to tell you dudes. You sure can waffle on about a load of high falootin bullshit over there with style but when it comes to tripping yourselves up, you take the prize!

[wisconsin_cur]

And the answer is... (in part)

SEC extends its ban on short selling
By Joanna Chung in New York

Published: October 2 2008 03:00 | Last updated: October 2 2008 05:59

US regulators on Wednesday night said they would extend a temporary ban on short selling of financial stocks as well as other emergency measures aimed at curbing potential market abuse.

The US Securities and Exchange Commission issued emergency orders two weeks ago as part of a broader government strategy to shore up confidence in the markets.

The measures included barring short sellers from trying to profit from price declines in financial stocks and requiring hedge funds and other investors to disclose their short positions.

The SEC said the measures – due to expire on Thursday night – would now last until the third business day afer the $700bn plan to rescue the financial system is enacted into law, but in any case, no later than October 17.

[IslandCrow]

Thanks Cur for the info.

[cube]

And the answer is... (in part)

SEC extends its ban on short selling
By Joanna Chung in New York

"Nothing is so permanent as a temporary government program."
~ Margaret Thatcher

[TheDude]

Lew Rockwell is keeping a spreadsheet listing the anointed ones, including manufactured home builder Fleetwood Enterprises, Inc and something called Strategic Hotels & Resorts. Also Irish, Scottish, Brazilian, and Greek banks. And Farmer Mac, which "provides financing of agricultural real estate and rural housing loans and liquidity." And Sallie Mae, plus some other outfits with Federal in the title.

Any of you want to form an LLC with a snappy title like Dieoff Mac?