Thursday, September 18, 2008

Frozen Short Selling

I would tend to believe that the rally that is underway should be short lived. The reason being the economic impacts of massive bailouts will be tremendous. See Japanese Deflation. The new short sale rule is just a way for financial companies to squeeze shorts and try to unload their shares to overseas investors. It's just another means for the financial establishment to squash the independent investors and traders. I think you'll see gold rally and bonds sell off as investors realize that all the risk the US government has taken on will be reflected into treasury prices.

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