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I believe so.
Look at what happened to the chinese markets.. down almost 70% because there is no shorting allowed over there. We ban it here and the markets will tank after the shorts get out (after the cover rally) because no shorts are there to take profits
Shoort squeezes is what keeps this market from crashing 5000 points in one day.
The Option markets couldn't function because you couldn't buy a call. Insurance companies couldn't have variable annuities because they couldn't hedge. Insurance is the foundation of banking, banking is the foundation of the economy and the economy runs the markets.
Why lift the uptick rule then ban it all together?? The people who got the uptick rule cancelled were convinced based on studies that it wouldn't affect the market. I don't see these same people now saying banning it will do any good.
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