So the government has once again intruded into the free market and has outlawed short selling of stocks. A short sale is when you borrow stocks that you don't actually own, sell them betting that the stock is going to go down, and then purchase them, hopefully at a lower price, in the future.
Well, you can rightly guess that all financial stocks were getting pounding by short sellers, and causing the price to go down down down. Now that it's banned, the prices are going up up up.
Doesn't anyone ever think for just one freaking minute that when the ban is finished on October 2nd that those very same stocks are going to plummet? It's going to be a blood bath that day. How short sided can people possibly be? The government has intruded for a few weeks of "normalcy" and has leveraged the future as payment.
Enjoy the gains now, because it's going to really be messy in October.
No comments:
Post a Comment