Friday, September 19, 2008

The Magic Band-Aid

When gravity is outlawed, pigs will no longer be required to grow wings in order to fly. The latest magic band-aid, the ban on short selling, coming from an increasingly socialistic Treasury/Fed Axis, almost guarantees an even bigger drop somewhere down the road. That's assuming it's only temporary. Vox Day, a Libertarian and arm-chair Austrian economist, puts the question succinctly:

I'm just curious if this ban is temporary in the "road work ahead - lane closed" sense or in the "extraordinary expenditures - income tax" sense.

I've never sold short on anything, so I'm not real familiar with it. It looks like I've found my weekend research project. A good start on understanding short selling can be found here. It also includes information on the repeal of Depression era banking regulations. At what point did our "leaders" decide that Wall Street could police themselves?

No comments: