Got a feeling markets reaching capitulation

SEC to fight short selling of financials

By Joanna Chung in New York

Published: July 15 2008 21:31 * Last updated: July 15 2008 21:31

US regulators will take emergency action to stop abusive short-selling of stock in financial institutions such as mortgage financiers Fannie Mae and Freddie Mac and investment bank Lehman Brothers.

Christopher Cox, Securities and Exchange Commission chairman, told legislators on Tuesday that the agency would issue an emergency rule to stop so-called “naked” short-selling of shares in significant financial entities. The SEC will also consider new rules to extend those trading limits to the rest of the market.

Short sellers aim to profit from share declines – usually by borrowing a stock, selling it and buying it back in the market. But in a “naked” short the shares are sold without being borrowed first. The emergency rule, which would be in effect for up to 30 days, would require anyone making a short sale to borrow the security first.

http://www.ft.com/cms/s/0/d28fc66a-52a9-11dd-9ba7-000077b07658.html?nclick_check=1
 
I bought WM early today. Could sell for a profit at the moment but waiting to see what happned off-hours. I hope the financials start rallying finally with the Earnings and re-assurance that they have enough capital.
 
Kudlow says to go real estate, but wait another year when prices will be even LOWER!
 
real estate is still dropping in some areas.. LOts of room still in Cali. My area has dropped drastically in past 2 months. People are finally tired of waiting and starting to slash costs.
 
me too, forward p/e's on the market are hard to find and how trustworthy are they.
I know most analyst overestimate forward earnings to help their brokers pump the stock.
 
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