Buck Naked Fannie & Freddie
As a result of the shorting of FNMA and FHLMC stock...
Christopher Cox told the Senate Banking Committee that the SEC will issue an order today imposing
a "preborrower requirement" on short sales in the mortgage-financing companies and Wall Street firms.
The requirement would prohibit the practice known as naked short selling, in which traders avoid the financial burden of borrowing shares when betting they'll fall.
The SEC's emergency order will require any person effecting a short sale in the listed securities to
borrow the securities before the short sale is effected and deliver the securities on settlement date."
The Nattering One muses... questions of the millenium... where was the regulation when:
housing prices skyrocketed on liar loan leveraged and NO DOWN flipping speculation?
oil prices skyrocketed 10X on massively leveraged speculation through options contracts on more "virtual oil" than ever existed?
food prices skyrocketed through commodities speculation on wheat, corn, pork, meat, soybeans, etc?
What happened to the "invisible hand" and the "free market"? Answer: As we have as we have proved in these pages many a time...
The "invisible hand" doesn't exist and there are no free markets unless the speculators in charge order them to be so.
All markets are manipulated and asset pricing contrived to benefit the brokers involved.
When these markets break down, the government reps of the broker sponsors rush in to re FIX the markets to the brokers desires.
Christopher Cox told the Senate Banking Committee that the SEC will issue an order today imposing
a "preborrower requirement" on short sales in the mortgage-financing companies and Wall Street firms.
The requirement would prohibit the practice known as naked short selling, in which traders avoid the financial burden of borrowing shares when betting they'll fall.
The SEC's emergency order will require any person effecting a short sale in the listed securities to
borrow the securities before the short sale is effected and deliver the securities on settlement date."
The Nattering One muses... questions of the millenium... where was the regulation when:
housing prices skyrocketed on liar loan leveraged and NO DOWN flipping speculation?
oil prices skyrocketed 10X on massively leveraged speculation through options contracts on more "virtual oil" than ever existed?
food prices skyrocketed through commodities speculation on wheat, corn, pork, meat, soybeans, etc?
What happened to the "invisible hand" and the "free market"? Answer: As we have as we have proved in these pages many a time...
The "invisible hand" doesn't exist and there are no free markets unless the speculators in charge order them to be so.
All markets are manipulated and asset pricing contrived to benefit the brokers involved.
When these markets break down, the government reps of the broker sponsors rush in to re FIX the markets to the brokers desires.
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