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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Ramsey Su who wrote (31796)5/5/2005 12:57:09 PM
From: Crimson Ghost  Respond to of 110194
 
Markets would be down much more if short selling was banned IMHO.

The real purpose of bear markets to end speculative frenzy and get assets down to reasonable valuation so that conservative longs can again make money IMHO. But short selling appears to hinder that process since many shorts are easily panicked and squeezed as we saw yesterday with GM.

Shorts are usually right about fundamentals, but that is no guarantee of a profitable trade and can trigger heavy losses if there enough shorts to attract big "squeezers."