U.S. SEC chief plans to scrutinize short-sellers, rein in 'gamification' following GameStop trading frenzy
The U.S. securities regulator is considering measures to boost transparency around “short-selling” and equity derivative bets and to rein-in retail “gamification” following January’s GameStop saga and the meltdown of Archegos Capital, its new chair will tell lawmakers. Gary Gensler will testify before the House Financial Services Committee on Thursday, according to testimony published on the committee’s website, in his first appearance before Congress since he was sworn-in as Securities and Exchange Commission chair last month.
https://www.reuters.com/article/usa-congress-gamestop-gensler/u-s-sec-chief-plans-to-scrutinize-short-sellers-rein-in-gamification-following-gamestop-trading-frenzy-idUSL1N2MS2EO
here we go...blame the ebil short-sellers for all this.
Same playbook leading up to 2008 mkt crash.
Habs no problem with it when done legally as not everyone can be successful-so naturally you would want to bet on the losers. Afterall, not everyone can be long in the market but listening to some of the comments surrounding this (espeically "stock anon" next door-total putz who actually beleives Musk should be the poster boy for this) they all seem to think that everyone MUST be successful and betting on any one companies demise is somehow un-American.
This is the system we have and since it never got fixed in 2008 (when they had ample chance to do so) will result in many taking sides long and short...you actually have a market this way.
The legal ramifications of naked short-selling need to be cleaned up (or actually enforced) as they were not and still allow this practice to continue literally unabated.
Think of this in the same way as the COMEX metals markets...just dropping paper on whatever it is they want to hit