If the system could be easily saved by government pumping in unlimited money into the capital market, it would or should have done it much earlier.
If short selling is really the cause, why banning it only temporarily and limit the ban to financial stocks?
If naked shortselling is unethical and bad, shouldn't 'naked longbuying' be also disallowed? What I mean by 'naked longbuying' is the practice of buying on margins, in which case a market participant purchase something with resources he does not own.
It seems to me that what Ronald Reagan was purported to have said might be relevant in anticipating the consequences of the U.S. Government's proposed action to rescue the market and economy: "The nine most terrifying words in the English language are: ' I'm from the government and I'm here to help.'"
If naked shortselling is unethical and bad, shouldn't 'naked longbuying' be also disallowed? What I mean by 'naked longbuying' is the practice of buying on margins, in which case a market participant purchase something with resources he does not own.
It seems to me that what Ronald Reagan was purported to have said might be relevant in anticipating the consequences of the U.S. Government's proposed action to rescue the market and economy: "The nine most terrifying words in the English language are: ' I'm from the government and I'm here to help.'"
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