[July 4th]

Legitimate hedges are disappearing from the market because of this. The options market makers are SOL in the financial stocks right now. When you can't hedge, look out - everyone's going to get smacked in the face by the volatility. The financials up or down 20% in a week will become the norm, not the exception.

[steve86]

Legitimate hedges are disappearing from the market because of this.

I agree and many (non-naked) shorts have been scared out even with no legitimate reason. I have heard even puts have diminished. This is truly a recipe for disaster, if that phrase hasn't been used already in this thread.