You can't buck the market

The US has banned naked short-selling (ie selling shares which have not been borrowed first) in a variety of US financial companies, including their main worries Freddie Mac, Fannie Mae and Lehman Bros starting from next week with the possibility of extending the ban for another 30 days. These stocks are now rallying as some traders are being forced to buy back those shares to comply with the SEC rules.
Perhaps the SEC in the US should take note of what is happening in Karachi. Pakistan had banned short selling and limited share price falls to 1% per day because the SEC of Pakistan was worried that political instability could cause a huge drop in the stockmarket. These trading restrictions were lifted recently and the market is in freefall causing hundreds of investors to riot today, throwing stones at the stock exchange building, breaking its windows, smashing plant pots in the car park and burning shareholder statements.