XJO 0.88% 7,959.3 s&p/asx 200

I think I now uinderstand why the new ruling to ban short...

  1. 3,191 Posts.
    I think I now uinderstand why the new ruling to ban short sellers of stocks might actually cause the crash. This is one scenario. If the markets continue to head lower without the short sellers in play, the markets could gather momentum and crash. If the short sellers were there, they would be tempted to take profits and close their shorts on the way down and so avoid a crash. That's just one possibility. However, it's not worth working it out now as we'll never know. The main thing is fear is now put at bay, at least for a while. They might have done the right thing to avoid the crash, or perhaps just postpone it. We'll just have to keep a watch. If the recent panic low is not THE LOW, then we shall find out soon enough, and we just have to endue the new depression. Have a nice weekend.
 
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