Washington takes on the shorts

Market Watch ^ | 07/13/08 | Rex Nutting

[TigerLikesRooster]

Washington takes on the shorts

Treasury bails out Fannie, Freddie, while SEC declares war on rumors

By MarketWatch

Last update: 8:49 p.m. EDT July 13, 2008WASHINGTON (MarketWatch) -- The U.S. financial system has lost hundreds of billions of dollars on stupid investments, but don't worry: The federal government has found someone to blame: Rumor-mongers and short-sellers. Sunday the 13th was a very unlucky day if you've been shorting Fannie Mae, Freddie Mac, or a host of other financial firms. Washington has put you on notice: If you don't have something nice to say about banks, don't say anything at all.

But if you've lost tens of billions of dollars for the shareholders because you're the CEO of a company that gambled everything on the assumption that home prices could never fall, don't worry. Washington has got a nice bailout for you.

Chris Cox, the chairman of the Securities and Exchange Commission, issued an edict Sunday declaring war on short sellers. The SEC and other financial cops will conduct immediate examinations at Wall Street firms "aimed at the prevention of the intentional spread of false information intended to manipulate securities prices." See full story.

[TigerLikesRooster]

aimed at the prevention of the intentional spread of false information intended to manipulate securities prices

Why doesn't SEC enforce this rule during the boom time?

[TigerLikesRooster]

Ping!

[pankot]

Start with that POS Shumer.

[KC_Conspirator]

But if you've lost tens of billions of dollars for the shareholders because you're the CEO of a company that gambled everything on the assumption that home prices could never fall, don't worry.

I actually heard a coworker say this a little over 2 years ago. What a fool.

[eyedigress]

This may be part of it. Lets see how Mr. Schumer is on the stand.

[Herakles]

To all the short sellers spreading rumors out there in the hopes of collapsing companies and ruining employees lives for their personal greed; BOHECA.

For all the other short sellers; BOHECA - I didn't want to let you feel left out.

The uptick rule should have not been eliminated in July 2007, and taking short positions with zero margin should not exist.

Dark markets should be transparent and brought in the the light by being regulated by the CFTC!

[tobyhill]

The Internet is a double edge sword. Sometimes it's good for getting reliable info but sometimes the rumors, while being false, become reality. I just don't see how the Government will separate the two.

[pointsal]

Call it the Schumer Crash of '08

Has a catchy ring to it, right?

[DPMD]

And America takes it in the shorts.

[slowhandluke]

BOHECA

It is:

BOHICA - Bend Over, Here It Comes Again.

At least, that's the New Jersey spelling, courtesy of the neo-libertarians at 101.5FM.

[grey_whiskers]

Like, *PING*, dudes.

Cheers!

[Herakles]

“BOHICA - Bend Over, Here It Comes Again. “

Thanks, I was waiting for a correction - it was late at night, you know what it's like.

My version comes from the Navy;

BOHICA - Bend Over, Here It Comes Asshole.