“We need more offense – so let’s just make defense illegal” – A high ranking group of idiots in Washington
The headline says it all. The SEC just issued this press release. I should be happy because this benefits my investor relations business immensely – but it’s hard to celebrate a hat-trick when the powers that be decided to ban goalies from the game. Moreover, after hitting $920 yesterday, gold is now trading around $850, so not so great news for resource companies.
Sure, it’s good for every long investor (most investors) – but it is still a joke. If the SEC and every other regulator actually did their job, short-sellers wouldn’t have a reason to short financial stocks so aggressively. Moreover, if shorts were wrong, long investors would buy cheap shares and squeeze shorts into oblivion.
United States Is Now A Banana Republic
I’d go on but this is such a blatantly stupid reaction to a series of blatant/fraudulent/ignorant screw ups by Wall Street and its regulators that I wouldn’t know where to begin and where to end.
Thankfully, we have Barry Ritholtz, one of the smartest finance guys in the galaxy, to sum it all up as follows:
This is the ultimate bailout attempt, which will have repercussions far far beyond our imaginations:
1) We suffer a loss of Market Integrity; The US is now a Banana Republic
2) Blatant market manipulation: this is nothing more than an attempt to force markets higher;
3) 60 days prior to a presidential election? This is a none-too-subtle attempt to influence the elections — especially coming on top of the Fannie/Freddie bailout;
4) The coming pop will create a huge air pocket, ultimately leading to us crashing much lower;
5) Expect a huge increase in volatility — upwards first, then down;
We Are A Nation of Morons, led by complete Idiots, making us complicit in our own self destruction.
Well said Barry.
Regards,
George
p.s. Where the hell was the SEC all these years when naked short selling drove small-cap companies out of business?
p.s.s I am adding this post to my “stock scams” category.
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