SEC Plans to Temporarily Ban Short-Selling

SEC Plans to Temporarily Ban Short-Selling

WASHINGTON — The Securities and Exchange Commission took its most aggressive assault against bearish stock bets by stating its intention to issue a temporary ban on short-selling.

SEC Chairman Christopher Cox briefed Congress late Thursday of the agency’s intention to take the extraordinary step of interfering with the market’s regular functioning. Short-selling is a trading strategy of selling borrowed stock in hopes it falls and can be repurchased at a lower price.

Well, that’s one way to prop the economy up. Can’t see anything wrong with this! Seems totally fine.

Sigh.

Thursday, September 18th, 2008 economics

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