Sanity Check via Wayback, 19 September 2008
Government has now, with the stroke of a pen, altered the way the markets work. Which again, is fine, if short selling goes the way of the buggy whip, for good. But that is unlikely. So what it has done is prepare the stage for volatility unlike any seen in the markets ever before. Wildly high highs, to be followed by devastating lows.
I’m not so concerned about the wildly high highs. It’s when the rule expires that I have a problem with. And it is the absence of coherence in the reasoning that I have a huge problem with.