In case I was not clear in the previous entry, I now favor banning all short selling. That is how badly I view this hedge fund, corrupt (in practice), strategy of momentum "paired trades". If I were running a stock exchange, I would ban the practice. I have come around to the view that the SEC should ban the practice.
Will Wall Street be unhappy with me? Wall Street be damned!!! Those peple are reallly begnning to annoy me (and I never did like them much).
People who want to bet against stocks can still buy "puts", or use other methods. But the trading early today, after the SEC lifted the short selling ban in certain groups of stocks, has convinced me that short selling is now so corrupt on Wall Street that we can't allow it. As I said in the previous entry, I agree with Jim Cramer on this one. Some policies are just insane, and allowing Wall Street to play this kind of speculative game in this environment is one of those insane policies. I would go so far as to say that Wall Street has become so addicted to an unhealthy, momentum based, form of speculative short selling that the practice should be permanently banned.
There is no excuse for allowing short selling of "target" groups in this crisis.
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