Off-Topic: Economic Downturn
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Name:   water_watcher The author of this post is registered as a member - Email Member
Subject:   Economic Downturn
Date:   12/19/2008 5:40:14 AM

I don't want to debate you, but not sure where you are reading that about homes in foreclosure. I am sure that is partially true, but a small part. Right now 1 in 10 homes are in some stage of foreclosure. That is huge and not just home flippers.

I am actually a fan of hedge funds. They are not for everyone, but a good hedge fund helps investors based on market direction rather than having just long positions. What has changed is they eliminated the up tick rule ... if you don't know that is when they only allow someone to short a stock on a tick up rather than continuing to drive it down. Hedge funds did take advantage of this SEC rule change and it did take good stocks and drive their price in to the gutter with any bad news. They are talking about bringing back the up tick rule.

The other thing that is still a requirement but is not enforced by the existing SEC chief is the requirement to have an actual counter party to borrow the stock from in order to short a stock. Without that anyone can short a stock which can drive the price artificially low.
Other messages in this thread:View Entire Thread
Economic Downturn - Webmaster - 12/18/2008 12:26:32 AM
     The Trucking Industry - Webmaster - 12/18/2008 12:32:02 AM
     Economic Downturn - wix - 12/18/2008 8:24:43 AM
          Economic Downturn - Talullahhound - 12/18/2008 8:48:45 AM
          Economic Downturn - water_watcher - 12/18/2008 9:20:55 AM
               Economic Downturn - wix - 12/18/2008 10:36:38 PM
                    Economic Downturn - water_watcher - 12/19/2008 5:40:14 AM



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