Us too, us too

I can’t believe regulators in Canada are even considering following suit with the U.K. and the U.S. and banning short sellers, but they are, according to the Globe and Mail. It’s "under discussion" says Paul Bourque, senior vice-president of enforcement, policy and registration of the Investment Industry Regulatory Organization of Canada. That would be the self regulatory body made up of many of the financial firms who’s stock prices would benefit from a ban on shorts.

This is astonishing. Canadian financial firms have not been under any of the same pressures that U.S. firms have. And even if they had, banning short sales does nothing but create an artificially-inflated market. Traders and analysts are cheering today’s gains. It’s like watching someone pump a balloon full of helium and cut the string that’s keeping it tethered, and then marveling as it takes flight.