(Back to the financial fray after a week on the Big Island)
Our federal government rode to the rescue recently to protect us from all those nasty short sellers who were driving prices down. So far, so noble, right?
Except the government banned a specific type of short selling called naked shorting, which was already against the rules. I guess they’d must have forgotten to enforce the rules or something before. Oh, the rule is only applies to certain financial companies. The Fed apparently wants to save our poor, put-upon investment banks and the like.
Except the rule is meaningless. Any trader can still easily short the stocks using puts, regular shorting, or single stock futures.
With financials now having the implicit backing of the government, they will continue going up.