SEC extends short-selling ban for financial stocks

[dipsydoodle]

Source: Associated Press

WASHINGTON (AP) — Federal regulators on Wednesday extended an unprecedented ban against all short-selling in the shares of more than 800 financial companies, keeping it in place at least until after Congress enacts a massive financial bailout plan.

The Securities and Exchange Commission announced the extension of the ban, which was put in on Sept. 18 in a bid to shore up investor confidence in the face of the spiraling market crisis.

The ban, which was to expire Thursday, now will last until the third business day after enactment of the $700 billion financial bailout plan now before Congress. It will end no later than Oct. 17.

Late Wednesday, the Senate passed the bailout plan, which appeared to be gaining ground in the House, where Republicans' opposition softened.

Read more: http://ap.google.com/article/ALeqM5j1qYpENSJmaTaTiLWSUFodScpFTwD93I59R00

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If this a dupe please move it. Article refers to 8 hours ago only.

[torbird]

1. Where's Your Messiah Now, GOP?

One more time: if the market is "free," then it does not rain manna from Heaven constantly. It goes up...but then it is just as likely (free, if you will) to go down.

Short-selling is betting against growth in the market (not betting against the market itself, because there is no rule that says the market must go up -- that isn't "free" -- this is a misconception that Americans have decided to endorse). For every up, there might be a down. Total freedom of action and thought.

If the "free" market truly worked, innovative ways of making money, like short-selling, would not be detrimental enough to warrant their forced stoppage.

Yet another conservative fantasy laid to rest this week. We're really flying through these shibboleths, eh?

[redqueen]

4. We are... but not in the minds of some people.

They're convinced this mess is all the fault of Fannie, Freddie & Dems.

[Robbien]

2. Holding shorts ransom until the Bailout for Wall Street is passed?

And they come right out and state it in their wording of this extension.

Total manipulation.

[redqueen]

3. "at least until"

I think this is a good idea actually...

[specialed]

5. This pisses me off to no end....

Short trades are necessary for any market. Plus I'm good at it! :) Hey...don't hate the player.