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Member Info for markson


Member Since: Tue, 11th Oct 2011

Number of Share Chat Posts (all time): 238
Number of Share Chat Posts (last 30 days): 0

Last Posted: 10 May '14



10 May '14


Agree, the more ordinary investors are aware of the practice the better...

But for everyone interest it should be eradicated as it is plain and simple manipulation of the free market.

Allowing millions of non owned shares to be dumped into the market cannot be anything else but manipulation...

Good luck with your request and hopefully it is not one of the institutions lending out against their investors interests...
10 May '14


Shorts do not deliver pricing efficiency, that is delivered by normal supply and demand.

What they deliver is an artificial mechanism to manipulate the stock price down.

Why should the price be manipulated that goes against efficiency and how can it be efficient to allow stock borrowed on margin to be feed into the market...thats not efficiency but distortion....It is an argument that Hedge Funds use but does not stack up....

The Ramping and deramping is normal in any market thats bartering whether selling cars or shares or anything else...

Jack7.......you are right it presents and opportunity for a few in some cases..but ultimately it destroys the wealth of many more..and if allowed to grow and continue will eventually cause wider damage which would wipe out that opportunity quickly for a great many......It is no more than a small group of wealthy individuals using this method to distribute wealth from many investors to themselves.......That in itself is not good for society as generally the market when allowed to work properly distributes to many.....
10 May '14


You are right those businesses (investment banks) would have collapsed as they were allowed to use hedging derivatives in other works they were allowed to use ordinary investors money to buy on margin assets far greater than their net worth.....That is what caused their collapse and the consequential damage to the world markets...

Shorting is the same borrowing ordinary investors shares on margin...in other words they pay £1 and borrow £20+ worth of shares which are then feed into the market.....That can only have one effect if several weeks supply is fed into the market in a few days.....

This does not take into account feeding publicity which has the sole purpose of undermining any business...

This practice is increasing and will effect more any more until it undermines the market....which of cause is what it is suppose to do....

Businesses use the market to obtain investment to grow and that builds the wealth of the whole economy, it creates jobs etc......

Shorting does nothing but undermine this an therefore the purpose of the Market and I would go as far as saying it undermines Capitalism and the spread of economic benefit to those that wish to invest in the future....
10 May '14


Zabrana...you are right about easy credit...but guess what that also did.

"Borrow cost is the fee paid to a securities lender for borrowing the stock or other security. The cost of borrowing the stock is usually negligible compared to fees paid and interest accrued on the margin account - in 2002, 91% of stocks could be shorted for less than a 1% fee per annum, generally lower than interest rates earned on the margin account."

Easy to borrow large amounts of stock on margin and feed into the market creating a greater effect when combined with other factors.....Remember this stock is not owned by the Hedge Fund so like derivatives has a far greater impact than normal supply and demand.....

The real impact was of derivatives was the collapse of Baring Bank long before the last crash and yet the regulators allowed the practice to continue....

Easy credit i will grant you was one reason but the fuel was a cocktail of Shorts and derivatives.

Shorts most definitely were a contributing factor and will be if allowed to continue....IMO

Why should brokers that hold nominees shares be allowed to loan out stock that ordinary investors have bought but are not asked whether they agree for those shares to be loaned and sold against their own holdings....
10 May '14


We have seen the effects of this dubious practice here....

But the impact has been seen before on a much grander scale.

Like the Investment bankers who were largely unregulated befor the last financial collapse we now have the rise of the new manipulators of the Market and it will impact and be the cause of the next recession...

Short History.....

" Short sellers were blamed for the Wall Street Crash of 1929.[7] Regulations governing short selling were implemented in the United States in 1929 and in 1940.[citation needed] Political fallout from the 1929 crash led Congress to enact a law banning short sellers from selling shares during a downtick; this was known as the uptick rule, and this was in effect until July 3, 2007 when it was removed by the Securities and Exchange Commission (SEC Release No. 34-55970).[8] President Herbert Hoover condemned short sellers and even J. Edgar Hoover said he would investigate short sellers for their role in prolonging the Depression."

Regulators and politicians are without doubt asleep at the wheel as usual or worse have a vested interest which is counter to the interests of the Economy or investors.....

Notice the dated when shorting using borrowed stock was allowed in 2007 in a down market and the effect not long after....

Hedge Funds are at the route of this and will be at the route of the next crash....They pay little or no tax on their gains so society and all of us are hit twice by the practice of a few rich individuals taking advantage of our innocent/ naive politicians and regulators.....

The E-petition to ban shorting is at.....just in case you wish to and have not had your say....

http://epetitions.direct.gov.uk/petitions/62851


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