dtrader

AIG Downgrades Should Create an Endgame

Gabe..with all do respect the short rule is like a fly in ointment with this systemic meltdown. If by the short rule u r referring to threshold securities then I also do not understand why AIG and LEH were not put on this list as was done by the SEC with ABK and MBI. That does help to slow or stop the panic short selling when there is a major crisis occuring. I also agree that there should be no naked short selling allowed. The uptick rule is another story and actually is not good for the market.

But I didn't want to get hung up talking about short rules when today the the country will be facing a financial catastrophy of unkown proportions that could bring our financial systems and the worlds to a halt if no solution is found today and AIG declares bankrupcy on Wednesday. The $75 billion AIG is looking for as a bridge loan is just small potatos if AIG goes into bankrupcy and their credit rating is downgraded again forcing trillions of dollars of swaps held by AIG to be unwound and virtually bringing the financial system to a halt.

Kinda sounds like the day the world stood still. Let's hope it doesn't come to that.

Should be an interesting next couple of days.