More on the SEC decision to ban shorts in financials offers:

“This is like a wartime move,” he says, likening it to when the government ordered all the airplanes out of the sky on 9/11. “Ninety-nine-point-nine percent of the planes in the sky were harmless, but they didn’t know so they had to order them all down just to be sure.”

See also: Wall Street: Was this terrorism?


  1. Randy in Richmond says:

    Is what I’m reading elsewhere true that those in the know could short huge volumes of shares and did not have to settle the same day? Sorta like buying short on margin (maybe Puts also) at 100%. It’s complicated but that’s how it reads.

    Many sites are implying Soros is behind this but I cannot find any confirmation–just speculation.

  2. I’ve always shorted on the margin. You need other holdings and risk margin calls, but as long as a stock’s going down, you’re fine.

    (Oh, don’t gasp. I’ve managed a portfolio for years and shorts are part of the deal.)

  3. Randy in Richmond says:

    I wasn’t aware you could do it at 100 %. If a company goes belly up or is bailed out by the Government and you hold shorts or puts in that company do you get credit for buying at zero?

  4. I’ve never had it happen, so I don’t know.