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Financial news I consider important, with my opinion, which is worth as much as you paid for it.

Tuesday, March 17, 2020

Short selling

Spain just made short selling illegal.  There is no WAY Trump can resist then following suite.


Short selling is quite misunderstood, it enables everyone to bet in either direction up or down.
If you ban short selling, the money 'lost' is a pure gain for the market makers.  Meaning wallstreet and banks get all the profits of the stock loss.

All you will do is prevent any citizen to profit from a fall in the markets.  The net will continue to push wealth to the top 0.01% as the rest lose.

China has never allowed short selling, yet their market has quite dramatic drops.  Without short selling bullish hype goes less unchecked, and could even be encouraged as the market makers will win big on a drop.

Back in 2008 they banned shorting, but only if your not a bank or market maker.  I had shorts, and held on as I lost 6 digits in a second.   Then what happened? Market fell worse, and even more to March 2009.  All the way down the market makers profited, and if you didnt have a position, all you could do is watch.


So looking ahead, plan for shorts to be banned, and we'll be going much lower.  Not immediately but eventually, since the 'easy money' will be on the downside for the insiders.

Good luck, and see you at the bottom.

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