[OPE] Freedom just another word?

From: Jurriaan Bendien (adsl675281@tiscali.nl)
Date: Thu Jul 17 2008 - 13:34:53 EDT

Interesting how "freedom" is supposed to be promoted by curtailing the ability of US companies to place servers with customer data in "restricting" nations...


In other news, the SEC (Securities and Exchange Commission) has put some clamps on shorting:

"Christopher Cox, SEC chairman, said in a conference call on Wednesday that the move was meant to be preventative. "A run on the banks which can take hold quickly would likely be turbocharged by illegal naked short selling....We are simply trying to remove the tools of mischief, so markets can operate efficiently." (...) Jack Ablin, chief investment officer at Harris Private Bank, says: "They should bring the uptick rule back and not make a new rule for a select group of stocks. "It is anti-free markets. I would love the SEC to come in and say investors can't short a stock I own.'' http://www.ft.com/cms/s/0/c729d806-537b-11dd-8dd2-000077b07658.html

'Uptick' is the name generally given to Rule 10a-1, under the Securities Exchange Act of 1934, which states that short selling is only permitted following a trade where the traded price was higher than the previously traded price (uptick). The rule was put in place to avoid the perpetration of a financial crime known as bear raid, i.e. to prevent short-sellers from adding to the downward momentum when the price of a security is already experiencing sharp declines. However, short sellers themselves viewed the rule as "largely symbolic" and having little actual effect on short selling. On the New York Stock Exchange a short sale was only allowed on an uptick or a zero plus tick (which occurs when the price is the same price as the last trade, but higher than the previous different trade). On the NASDAQ, shorting was only allowed on the bid side when the current inside bid is not lower than the previous inside bid (i.e. a downtick). The reasons underlying the decision of the SEC of eliminating the uptick rule are unknown. http://en.wikipedia.org/wiki/Uptick_rule

I've been loving you 
too long 
to stop now
There were time 
and you 
want to be free
My love is growing stronger, 
as you become 
a haven to me
Oh I've been loving you 
a little too long
I dont wanna stop now, oh
With you my life,
Has been so wonderful
I can't stop now

- "Lovin' you too long", The Rolling Stones

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