World Economy – Repair progress

September 22, 2008 Leave a comment Go to comments

I am pleased – no jubilant that there has been a concerted effort of behalf of the stock exchanges in the USA, the UK and Australia to outlaw short selling (in the short term anyway), this is a totally speculative process, there’s that word again – speculative – works that the seller who actually doesn’t own the shares banks on the shares sliding – they buy the shares back at a lower rate – return the shares to their owner and pocket the difference – see a full explanation here.

There was an immediate jump in value of shares such as Babcock & Brown, BHP Billiton and MacQuarie Bank – they all closed higher – it seems that we in Australia have our own brand of opportunist and cowboy, who only cares about themselves – God help us.  Short selling is almost never ethical only just acceptable in a strong and healthy market – but definitely not now.

Resource stocks were among the top performers with BHP Billiton surging 12.1%, or $4.30, to $39.70, and Rio Tinto jumped 9.3%, or $9.50, to $111.00– Apparently over A$50 billion dollars was re-invested in the stock market – but Guy and gals it ain’t over.

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