Posted on September 19th, 2008 at 08:37 AM
As I prepare to head off to the airport I wanted to drop a note to our faithfull readers.
The SEC in concert with the UK financial regulatory bodies has banned short sales in financial stocks. As I write this a small rally is taking place in the markets. I say small because in terms of what has happpened (and in my opinion what still will happen) it is a pittance of a rally. This is the near elimination of free markets as we who have traded for any length of time have come to know them. Short sales did not cause the current financial crisis. If anything the savy short sellers out there should be hailed for pointing out the risks that were in the system long before they were realized. Just because something has not had an effect does not mean it never will!
