There\’s nothing so permanent as a temporary government program

Said Uncle Milt.

The FSA said the ban would be in place until January when permanent new rules on shorting would be formulated. Mr Brown said: "I think you\’ll find new rules come in for the future…We have very unusual and volatile financial markets . It would be wrong for good companies to be brought down by speculators."

Sigh.

2 thoughts on “There\’s nothing so permanent as a temporary government program”

  1. It would indeed be wrong for good companies to be brought down by speculators; but that hasn’t happened yet.

    As in the 30’s the real damage is being done by the government trying to “fix” the “crisis”.

  2. What damage is actually done to a company when its share price drops?

    1, It has problems raising additional capital.
    2, The management’s bonuses fall.
    3, ???

    The price of a company is just an opinion. My trousers are out of fashion, but they’ve yet to be “brought down” by public opinion.

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