UK Hedge Funds planning to sue regulator (dammed right they should) You can't just change the game like that just to benefit a clique with lobbying power/a lever in the form of fear of consequences. The solution exists, close down, auction off assets at clearing prices - the problem is caused because the banks are resisting being closed down and we are paying for this. The Koreans have already said they are looking to buy distressed US assets - probably many SWF's are too. http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/21/cnhedgefunds121.xml
could someone answer this... this $hit is only temporary, like < 1 month right?, like I don't have to find another job? If I can't short sell, my risk to reward plummets, as rather than establishing positions of 50% long 50% short and packing on the size, I have to go 100% long and severely reduce my size
I know this lady is passionate about what she is saying, but in my opinion the homeowners that took on these mortgages are equally responsible for our current problems compared to the financial institutions. Everyone is to blame who tried to game the system for their own personal benefit/greed. That being said, if Wall Street gets a bailout, the homeowners should get one too because they were just as irresponsible and speculative. Makes sense to me! Actually, it doesn't make sense and it makes me want to puke all over Bernanke's shoes.
This is one of the worst intervention ever but: A. SEC will very likely extend this crap rule to help the consolidation of financial sector. This will enable to recapitalize financials at less stupid prices and bring back some Chinese again. B. Once they repeal the rule they will repeal it "temporarily", i.e. conditional on behavior of financial shares. This will in effect disallow excessive shorting as shorters will be scared that something like this Friday will occur again. C. They will likely try to come up with something that makes naked shorting ban enforceable - something that should have happened long time ago. D. lastly, uptick rule will be likely reinstated. cheers
".... if Wall Street gets a bailout, the homeowners should get one too because they were just as irresponsible and speculative." Hey, where's my cookie? I wasn't part of the problem.
I don't really know the answer to your question, but I think there are a lot of daytraders on ET in similar positions. If shorting was banned altogether, I think many of us would be getting out our resumes. But I think that is pretty unlikely, at least on a permanent basis. A whole lot of liquidity would disappear and I don't think they want that to happen (not to mention all those fees we pay day in day out). I do think the current rule will be extended, and its likely that the uptick rule will be brought back. If so, I hope it only applies to the 799 companies and not the entire market (anyone think there is a possibility of that?). Anyway, there are many more experienced traders on this board who can probably give you a much better answer, but whatever happens I am sure there will still be money to be made somewhere and we will just have to keep on adapting if we want to stay in the game.
I understand your point. But the point I'm making is, and I warned you all of this, we are not in control. The fucked and damned have every right to call for the heads of the Wall St. elite, and they will. And there goes leverage. And with that, daytrading. It will get worse, and worse and worse, because you havent' seen all the sins exposed. These guys did horrible things. When the money trail gets exposed, when you see the bribes, the manipulation, the money laundering, all inside the daily business of Wall St. at the highest levels, the backlash will be unprecedented. No matter what you could throw at me as a future scenario, I would tell you, 'could happen." Up to now, tell me where I"m wrong. I couldn't even watch that whole clip, I was so disgusted. But I can't fault her. I'd feel the same way. "Hey, my constituents are busting their ass every day, and you fuckers are stealing billions and putting their system at risk? What gives you the right? " You just can't argue with her. We lost that right. Here's what you will see. Exposure of huge violations of the Patriot Act. Arrests of Wall St. heads, hedgefund heads, bankers. Proof of outright bribery. Reporters on the take. How the hell do you think we got here? I was so sick to my stomach, and not for me, on Wednesday and Thursday morning, I came close to puking. I was that sick. And I haven't puked in 30 years of this. Don't you guys realize? We were inches from no markets tomorrow. Inches!!!!!!!
Now, you've got me going. I've talked to psychologists, market guys (there are guys on the inside stepping up, trying to save the system), military guys (this is a big topic at the pentagon, really), psychiatrists. The diagnosis is the same. These guys are sociopaths. They can see nothing but markers, and they don't care how they get them. Can you imagine going on TV and arguing for your right to destroy financial institutions? That is their right. Are there sins? Yes. But do you destroy everything, and wire the proceeds to bank accounts offshore? They do, but why. Are any of you so greedy, that you'd put your bank account ahead of the nation? We're asking 19 year olds to take a bullet, but we can't control the greed in our own financial system? There. Now beat me up for the rest of the day. By the way. Why do you think Patrick Byrne says outrageous things. Why can you pretty much say anything you want? Because these guys know, Patrick has the money , and if they sue him, he'll get discovery, and they're dead. He's hoping they sue him. In the early days of this, there was a guy whose company was destroyed by this, but it was a valuable service in the investigation of the problem O'Quinn's firm bought it. The fellow was supposed to 'negotiate' with the criminals, see if they'd lay down, compromise. It was two of the biggest names in this. One has since been convicted, one will probably soon be indicted. We turned over a bunch of stuff to his home State at their request three years ago. That should be coming up. Anyway, the fellow told me, 'real nice guys, had lunch, they got up paid the bill, and said, 'we've got 5 million to throw at a lawsuit. Do you?" See, that was SOP. Throwing tons of money at the legal system. Bryne had the money, and he's got them in a head lock in California. Just don't know what will be left for him to colllect. But for him, it's not about the money, or Overstock. He's trying to help us, and yet, the establishment fought him tooth and nail. Berkshire Hathaway is on the protected list. Remember buffett saying 'if they want to naked short us, let them." ? Wonder how he feels now.