When a company is healthy and have a conservative financial leverage, nothing can hit them. When short sellers wanna short sell the stock, they is a simple action call share buy back although i bet short sellers won't target any stock that have sound fundamental. Only the companies that is in trouble and will collapse soon will be targeted. So short selling will never make a healthy company bankrupt, it will only make a trouble company bankrupt faster.
We already know short selling is allowed just like investor can buy share with money they doesn't have. So if a investor or trader can buy share with money they doesn't own, why can't a investor or trader sell share that they doesn't own?
So Financial regulators in the U.S. and U.K., attorneys general in New York, Texas and Connecticut, and the three largest U.S. pension funds all began cracking down on short sellers this week. Furthermore the SEC said yesterday it may require hedge funds to disclose short-sale positions and subpoena their communications, while the Financial Services Authority in the U.K. banned short sales of financial shares for the rest of the year.
Look like these "smart people" aren't smart after all. They still don't understand what went wrong. They still think stock market crash is the cause of economy slowdown. According to the pirate from pirateofbatavia.blogspot.com
So next few days is the best opportunity for you to sell your shares and get out of position. The worst is yet to come. This is just the small taste of unsound economy.
Until the Regulators and Officials realize the problem, the economy will continue head toward hell.
Good Luck
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