Short Selling Banned!!!!!

The American Government has announced a ban on short selling Financial Institutions' stock.
What is short selling?
Short selling, essentially is a bet that a stock price will fall. In a nut shell, the short seller borrows shares from a broker, for example 100 shares at $10 a share. The short seller then sells the borrowed shares and gross $1,000. When the stock price fall to $5 a share, the short seller buys back the 100 shares at $5 a share, for a total of $500. The borrowed 100 shares are returned to the broker, and the short seller profits $500. But on the other hand, if the short seller miscalculate and the price increase, he will lose money. Take that 100 shares at $10 a share, if the price increase to $12 a share, the short seller will have to return the 100 shares that cost him $1200 to repurchase, resulting in a loss of $200.
So why is it banned? Like I said earlier, short sellers hope for failing stock prices; this idea is contrary to the expectations that companies will prosper over time. The idea that companies will be successful, is what drives the American Economy. Short selling has the potential to hurt all those shareholders whom buy stock and hold them for long periods time, hoping that the company will grow and the stock price will increase.Due to the "Financial Crisis," and falling price of Financial stocks, short sellers are probably all over the economic downturn. Short sellers, can drive down the stock prices, which will deter people from buying into these companies. If no one is buying stock, and the price continue to fall, eventually the company will collapse (Lehman Brothers) or reach the point where the Government will have to save them (AIG and $85 Billion).
Right now, short sellers are equivalent to kicking a dog in the leg, but the dog only has 3 legs to begin with. The dog will fall if someone doesn't help. If this dog fall, we are fucked!!!!