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Market is about to Crash

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not surprising the entire market has become the biggest con game in history against the average person.
I for one refuse to play until a lot of crooks go to jail and the rules are changed to protect the long term investors from them.
A 20 minute delay on all trades is a good start, 60 minutes on computer initiated trades, then ban shorts, end the practice of rewarding companies for not paying dividends.
A 200% tax on profits if a percentage of profits is not paid in dividends will do nicely.

Then I will consider putting money in the market.
 
I''ve been working on paying down my cc debt and paying extra on my car. Family and myself will be putting more cash aside as well. For the "Improvement" that they have preached the past three months, things sure don''t seem better.
 
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Karl: if all that happened, there would be no long term investors because the Dow would be at 4000. You can''t ban short selling. Short selling is not the problem.
 
Date: 5/19/2010 1:41:54 PM
Author: tradergirl
Karl: if all that happened, there would be no long term investors because the Dow would be at 4000. You can''t ban short selling. Short selling is not the problem.
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A true level 4000 is much better than a gamed up 10000
Games are the problem and short selling is one of them.
It could very easily be banned.
 
Date: 5/19/2010 1:41:54 PM
Author: tradergirl
Karl: if all that happened, there would be no long term investors because the Dow would be at 4000. You can't ban short selling. Short selling is not the problem.
Click to expand...
been short on the financial sector for the past yr.
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You say that but that would cause an economic meltdown of biblical proportions. You''d have bankrupt pension funds, people''s IRAs wiped completely out, companies out of bidness. Nobody would have any money to buy Octavias except short sellers ;) Short sellers are often the buyers of last resort when the market tanks like this; otherwise the down moves would be much more severe.
 
Date: 5/19/2010 1:41:54 PM
Author: tradergirl
Karl: if all that happened, there would be no long term investors because the Dow would be at 4000. You can''t ban short selling. Short selling is not the problem.
Click to expand...
Agreed. Karl, I know you''re adamently against short selling, but I never truly understand the argument against it. First, short sellers take more risk, so there is already a signficant incentive to steer clear of it. Second, short selling only works in an inflated market. If the market were in balance, there would be virtually no opportunity to short sell. My third point was to make point number two on a more granular level (short selling individual stocks keeps the price in check), but it''s virtually a re-statement.

I''m not currently shorting, I''m long a couple of futures contracts. What can I say, I grew up on a farm and since I''m no longer a critical part of planting season, I have to get my fix somehow.
 
Can you dumb this info down please? I don''t understand.
 
Hi,

I thought the problems with short selling were that in a panicked down market there are no buyers, there are mainly sellers, so a freefall can happen and this constant downward pressure on the stock can destroy the value of a company. The stock for those that held it is worth far less or end up with no value .Lehman Bros.

In order to insure some sort of stability a short seller has to borrow the stock from a broker before he could short the stock. It was found that short sellers skipped this step. I think this was called naked short selling.

Several yrs back the rules were changed . Before, a short seller could do a sell transaction , there was something called the uptick rule. In other words there had to be a buyer to come inbetween two sellers. This process slowed down the freefall of short-selling. This was changed by the SEC and may now come back.

There are people who study financial statements and do due diligence on companies. Someone could find that a company does not look very healthy financially so he bets against the company by selling the stock short. I cannot find anything wrong with a smart guy shorting a company. The followers then jump on board and the action takes on a life of its own. I''m for slowing the proces down. Restore the uptick rule and make sure someone own or borrows the stock before they can short it.

Trader Girl-- If own Citi , and think it may fall can I or should I short Citi while I am long. I do not know how to trade options so if you read this please answer the above question. Thanks. Annette
 
You can write (sell) covered calls against your position or just buy puts in a covering amount. Or if you have another account, you can short and be market neutral in it but I don't know why you'd want to do that. If you chose to use puts, I'd let the market rally a little as it is quite oversold right now to drain some of the current high premium out. The VIX was 48 on Thursday, way way above the trendline.
 
New England Lady: both my DH and I got started trading ag commodities. His family had a corn and soybean farm in Nebraska. It is still his first love. The weather markets and chart gaps are sometimes too much for me but it is fun . . .

turn the machines back on!!!!!!!!!
 
n/m
not worth debating again,,,,,
 
Date: 5/23/2010 5:31:20 PM
Author: Steal
Can you dumb this info down please? I don''t understand.
Click to expand...
I might as well withdraw the question.
 
steal, i too was awaiting the response to your question........

mz
 
Happy Reading

**Link removed by moderator. No linking to blogs or personal websites**
 
great, just great......but thank you for trying, Tradergirl!

mz
 
TG,
Think we''re headed for a double dip?
 
I did until I saw that employment report on Friday.

I suspect we''ll be in a wide trading range now from the April highs to the June lows and it may take as much as a year to break decisively higher or lower.
 
This is not good for the people whose life is moving around in the market they will suffer.
 
Well, tradergal, what do you advise for people within 8 years of (early) retirement and 401k investments? What percentage in stock or stock funds, bonds, or cash? We recovered everything from the drop two years ago (or so) and have gained a little, but we are pretty conservatively invested. Too late to take big risks at this point.

Oh good grief! I just saw that the original post was a year ago!!! :lol: Thankfully we dodged that catastrophe!
 
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