So much for the ban on short-selling......................... (page 3)

BurnTheShips

uh, sure, that'll work out just great for 300 million Americans.

It wouldn't be 300 million Americans for long. Some people seem to just want to immanentize the eschaton. XJW hangover, methinks.

BTS

Warlock

"Were any of the stocks on the "banned" list immune to Monday's sell-off of 777 points?"
Well, yes to a large extent. They were certainly immune to shorting. As far as the sell-off, I haven't looked at those stocks specifically, but I'd imagine that they were already so beaten down in the market that, in general, they didn't suffer another almost 8pt drop on Monday.
They went down, along with everyone else.
"Short sellers expose the weak, and when they try to prey on the strong, they are crushed."
Research exposes the weak. That aside, we can't really afford for our entire banking system to fail simply because it is "weak", now can we?
The short sellers started selling the bank stocks down before the "research" identified there was a problem. A big problem, and yes, the banking system must be allowed to fail. Intervention, like banning short selling will only prolong that failure and make it worse.
"That is how the markets work, like it, or not."
Actually, the market works just fine w/o short selling. I'm glad that at least temporarily, the powers that be decided "no, the market won't work this way, and we don't like it". They certainly shut you up, didn't they ;)
The powers that be rigged the game, but they can't keep it that way forever without causing a big problem to get much bigger, but how did they "shut me up"?
Warlock

SixofNine

"yes, the banking system must be allowed to fail. "

.

Alrighty then.

SixofNine

FreeWilly, isn't:

"During the S&L crisis "Historical accounting" was employed to value assets (like MBS). Thrifts basically looked back on what prices used to be to determine the current value of their Real Estate loans. This enabled them to hide the current diminished value of the assets backing the loans. Because they didn't have to show a loss on their books, they could go on lending more and more until the whole thing blew up! Now, the delay in implementing the FASB Mark to Market rules appears to me to be a repeat of that and could make matters even worse."

....what Japan did back in the eighties, extending their problems for a much longer time than necessary? Or do I have that backwards?

Brother Apostate

"Learn to live off the land."
uh, sure, that'll work out just great for 300 million Americans.

It's been done before. And (probably) not all would be affected. At least not immediately. Anyway, sooner or later, it is inevitable. Nothing new under the sun.

It wouldn't be 300 million Americans for long. Some people seem to just want to immanentize the eschaton. XJW hangover, methinks.
BTS

Not at all - Christian "hangover" if you like:

May your kingdom come

and what you want be done,

here on earth as it is in heaven. - Matthew 6:10

The one who is testifying to these things says, "Yes, I am coming soon!" Amen! Come, Lord Jesus! - Revelation 22:20

Then for reference sake, theres:

Romans 8:18-30

2 Corinthians 6:16

For starters.

BA- It's inevitable.

SixofNine

"It's been done before."

.

No, no it hasn't. Not even close.

Brother Apostate

Six,

I'm not arguing the number, I'm pointing out that during the GD, 1 in 3 were homeless, i believe. That was lot of people. I know many, including many of my family members, who went through it.

So, it can be done. It will happen again. It's inevitable.

If it doesn't happen now, it will happen in a few to several years.

This time, it will may be worse for those who haven't prepared.

But there will be survivors.

Alternatively, perhaps outright slavery to the wealthy elite will be offered as a "solution".

Or is that really an alternative?

BA- Be prepared.

FreeWilly

6o9 "Isn't ....what Japan did back in the eighties, extending their problems for a much longer time than necessary? Or do I have that backwards?"

That's correct. Massive attempts to recapitalize deadbeat banks combined with very loose monetary policy (0% interest rates) prolonged the problem resulting in a recession known as "the lost decade". Stock and property values in Japan declined for 18 years despite massive government intervention. Japanese Citizens had a positive savings rate to fall back on which helped their economy survive this. The US has a negative savings rate.

I mentioned it earlier, but Norway took the opposite approach and let poor investments fail and resisted massive government intervention. They sought private solutions where possible and in the cases where they did intervene they too preffered shares (controlling) of the ailing companies. They recovered much quicker - 2 years if I real correctly. The Norwegian model largely viewed as a success and is IMHO the model we should follow. Either way pain cannot be avoided only prolonged and deepened. Just rip the band-aid off and be done with it so our kids have a future.

So much for the ban on short-selling.........................

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