[quote=flu][quote=davelj]Over the long term, this ruling is meaningless. Over the short term, it just says, “Stock prices can be manipulated up, but we’re limiting the degree to which they can be manipulated down (whether deserved or not).” I’m philosophically against shorting restrictions, but it’s not particularly meaningful over the long haul.[/quote]
Just curious. What’s your opinion in why the SEC/gov is doing this? Futile attempt to try to prop the markets up? I fail to see how this can possibly help.[/quote]
I think it’s a compromise/half-measure/political solution to a “perceived” problem. In a way, it’s the perfect rule – it will have so little impact on anything that no one will care deeply. But it has the appearance of reigning in “evil short sellers.” It’s smoke and mirrors… but of the best kind as it really doesn’t do much harm.
