Thursday, September 18, 2008

You Know What, It Doesn't Really Matter Anyway

After hearing that the SEC has decided to ban short selling (link here) I have really hit my limit. It doesn't matter anymore. Nothing matters in this market. I might as well throw my computer out the window, along with my charting software. The government has completely taken over our stock market, and if you thought the volatility and manipulation was bad before, just wait for what you are about to see. I guess we haven't just converted to socialism, but instead have moved all the way to a communist government. Way to go guys! Keep up the great work!

Honestly, this type of action makes me just want to take all of my money out of my account and just not play this game any longer. It is so rigged it is unbelievable. And I am not saying this because I am about to lose a ton of money or being hurt financially in any way. I am completely in cash and have been successful this year (up close to 90%). We could rally big tomorrow and I honestly just don't want to even participate if we do. The United States Stock Market has officially lost all credibility in my eyes. Maybe it never had any and I was just naive. But the steps today are absolutely ridiculous. As Bear Mountain Bull states, perhaps it is time for a worldwide boycott of the stock market. I am for that.

I haven't even mentioned the plan to give $400-700 billion more of taxpayer money to the stupid banks that caused all this problem that was "leaked" today. From everything I read, the idea proposed today involves setting up a taxpayer-backed fund for banks to dump their bad debt upon. We get to pay for it. Sounds good to me, how about you??? This is in addition to the $80 billion of taxpayer money given to AIG, and the potentially trillions of dollars used to bailout Fannie and Freddie. And we still haven't mentioned the Bear Stearns fiasco among others.

I hate to say this, but I think we may be witnessing the beginning of the downfall of our great nation. I sincerely hope I am wrong. By doing this ridiculous crap, these idiots are basically admitting that things are much worse than they are letting on. They are panicking, and in all likelihood will actually increase the odds that what they are trying to prevent (a total crash) will actually occur. By taking away short sellers, they have just eliminated built-in buyers for stocks. This constant intervention is in no way what our country was founded upon.

I wonder how many times George Washington and Thomas Jefferson rolled over in their graves today. This is truly a shame.


Anonymous said...

I have a question.. when trading first started on Wall Street ( I don't know what year that was) did they have short sellers?? I'm just curious, and if not when did short selling begin?? To me the purpose of investing is to invest in a Company you endorse and believe in for its betterment and thereby in time be rewarded. Personally, I would like to see some of the casino elements of the market be terminated. Don't hate me guys.

Anonymous said...

I am guessing you'll be sitting on your hand for a little longer?

Marc said...

Dude, it does matter. At some point you'll get over it and adjust.

Let's face it, governments who don't appear to do anything when there's a crisis quickly become ex-governments.

The powers that be will pull out all the can take that to the bank.

I believe the market is mostly about emotions (fear and greed) and rules are there to make us feel like it's safe to play.

I actually find the whole thing amusing.

Gustav said...

Honestly I am not even from the US but it really makes my heart hurt when I see how they are destroying that beautiful land... with all the crap this government keeps doing it seems that there is not much of the REAL AMERICAN people LEFT.

Its just the same as what they do with people like Ron Paul, they just sideline everything that is honest, correct and good.

It is also very sad to see that the government have kept their people so ignorant that the average Joe cannot even get that it is their money who is bailing everything out, with the expense that with so much money printed and given away not only the American People will suck up the losses but the aftermath of explosive inflation and extreme currency devaluation to the point that maybe the AMERO will finally have to be set in place (uh? amero? look for that too) ... I really feel bad for all of you... but dont worry I do also know that we the Europeans are on the list to collapse... Today with this globalization there is not a single chance for any of us to come clean of this mess...

I hope God prepare us all for what is about to come, because no single trial to ban shorts or whatever will avoid people to keep selling because of lack of confidence... We are just retarding the inevitable...

Hang on everybody

Mac said...

Lots of interesting comments.

First, as far as I know, short selling has always been a part of the stock market. I know in reading about Jesse Livermore there were times he shorted the heck out of the market - that was in the early 1900's.

I don't know if they will ban all shorting or just financials, but the bottom line is that it is a disturbing trend. What no one has mentioned is that if this sticks, the game is forever changed. No longer will you have huge moves in stocks like TASR is 2003, because there will be no shorts to push stocks to astronomical levels. That is very disappointing.

Marc, that's fine if you find everything amusing. I just really see this whole thing as a major change in how our government is going to act, and that's sad. We are going against everything this country is supposed to be about. I just saw a graphic on TV that every American now owes almost $4000(in addition to all the other costs being put upon them through higher inflation) for the recent bailouts of AIG, Fannie and Freddie and this new great idea. Meanwhile, their CEO's are still keeping millions of dollars in severance packages and not one of them will spend any time in jail. Sorry, I don't think that's funny.

Gustav, very well said. As I said in my last, the Founding Fathers are rolling over in their graves.

bmbull said...


Governments that go broke also become ex-governments.