stretcho44

Citigroup: The End Draws Near

Naked shorting has been classified as "securities fraud" and stopped as of Oct. 17th. The options market maker exemption was closed which is why option premiums have been so high since mid-Oct. and VIX at record levels. It is not "fear" so much as the extra cost the options market makers have to recover when locating and paying the fees for borrowing shares to short.

The problem is the lack of an UPTICK rule allows massive, concentrated short selling that cascades when long sellers have to sell too. It might not be an "uptick rule" but there really needs to be some mechanism to throttle the short selling rate.


On Nov 22 12:02 PM Emerald wrote:

> Financially, Citi can survive. Short sellers are on the rampage and
> naked short sellers should be put in jail! Paulson has chosen to
> leave his job early and should be fired immediately for incompetence.
> Bush just left the country in a crisis. Reinstate the uptick rule
> and provide Citi a bridge loan. Otherwise, Citi's failure will show
> us what the "new" great deprssion will look like when the government
> institutes a national bank holiday through the end of January 2009.