Towards a market only for buyers

The current state of progress towards a market where only buying is permitted is as follows:

Pakistan: There is a floor price on the main index. “This Floor-Price-Level means that, KSE index cannot decrease below the closing level of [27th of August, 2008]: For KSE-100 index, the Floor-Price-Level is 9144.93 points. This action is taken because of the decline in KSE index to very low levels.”
Russia: The stock market itself was closed for a couple of days.
United Kingdom: Shorting of all financial stocks is banned: “The FSA stands ready to extend this approach to other sectors if it judges it to be necessary.”
United States: Probably headed in the same direction. Updated: They are already there

Posted at 1:30 pm IST on Fri, 19 Sep 2008 permanent link

Categories: crisis, regulation, short selling