Gentlemen, No Short-Selling in Here! This is the Stock Market!

By Paul Kedrosky · July 15, 2008 · ·

Today’s news that SEC Chair Chris Cox is trying to create a kinder stock market by announcing a rule that already exists — you must pre-borrow stock before you can short it — reminded me of something straight out of Dr. Strangelove. In particular, it put me in mind of one of my favorite scenes: "Gentlemen, you can’t fight in here! This is the War Room!"

 

As an aside, I think the SEC should always announce new rules that are actually existing ones. It’s simpler and much less trouble than bringing out new real rules.

Related posts:

  1. Excellent reading on hedge funds and short-selling
  2. Short-Selling and Insiders
  3. Can’t Keep the U.S. Stock Market Down
  4. Money:Tech: Social Networks in the Stock Market
  5. linkfest 03/28/08: Short-Selling, Bear Raids, etc.