In a previous report I mentioned the utility and usefulness of short selling, the practice of selling borrowed securities, in the hope of buying back and repaying the borrowed security at a lower price in the future.
Without short selling, markets would become overheated and overvalued and would not be priced as rationally as they generally are.
During catastrophic financial meltdowns or other emergencies which may affect markets from functioning, it may be necessary to stop short selling just temporarily.
Currently, the SEC has unwisely placed restrictions on the use of short selling after a security is off 10% on the day. Unwise, because of the difficulty of policing that restriction in the age of lightning-fast computers.
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