A lot of people and pundits have been blaming short-selling for the recent stock market plummets, and even the SEC temporary banned it at one point recently. But what is short selling? Marketplace’s Patty Hirsch is back with another video and his whiteboard to give you the low-down.
The SEC has temporarily banned short selling of 799 financial stocks, and the Treasury Department has said that it would guarantee (temporarily?) money market funds up to the amount of $50 billion. The New York Times called this move “startling” because money market funds have long been considered one of the safest investments — about as safe as a savings account.