oregonduck

Wall Street Breakfast: Must-Know News

This article indicates that the SEC will even implement more stringent rules regarding Naked short selling for the broader market, not just certain stocks. I think that this will really help turn the tide and give the longs some traction.

www.ft.com/cms/s/d28fc...

Financials: Don't Believe the Rumors

But--how will the shorts be injured with the limits on Naked short selling being implemented tomorrow? A lot of them wont know about the new rule and that will allow a rally IMO.


On Jul 15 09:29 AM friend wrote:

> The short sellers are raging an attack at the financials to an extent
> of damage , worse than the 911 terrorist attack .
>
> The only difference is that the short sellers are much stronger than
> the defenders .
>
> Yes , it is a financial war and not just a market of supply and demand
> .
>
> All bank stocks are commonly seen sliding over 5% in price in just
> about 2 hours time , regardless the financial strength of each individual
> bank .
>
> Such strong concerted power can only be released by a conspired group
> of short sellers .
>
> Conspiracy is criminal .
>
> Panic catch on by the general public and the price went down further
> .
>
> The defenders of price become weaker due to their loss of equity
> .
>
> Lowering price or equity , credit crunch , weakening economy all
> come into a vicious cycle and domino effect .
>
> Such huge depletion of pricing has nothing to do with the value of
> the bank stocks .
>
> Some banks are paying dividend at a rate of more than 20% to the
> now depleted price .
>
> Yes , they would cut dividend in the next quarter while their equity
> is cut tremendously by the invincible short sellers .
>
> Strong defenders are needed to buy against the short sellers so that
> the badly depleted price can be pull back . The confidence of investors
> would be accordingly restored .
>
> The Fannie / Freddie stocks are immensely important in strategy .
>
>
> Should the Fannie / Freddie stock pricing be stablized , the pricing
> of the rest of the financials are less easy to be pull down further
> .
>
> The equity values of the two are of immense importance to the passing
> of the mortgage rescue plan .
>
> The mortgage rescue plan would then help to stablize the housing
> market .
>
> I know for the fact that some government did encounter a similar
> financial war .
>
> The same government stepped in to buy against the short sellers by
> setting up a trust funds using the taxpayers' money .
>
> The same government won and made money for the trust funds as a result
> that the pricing grow back to normal .
>
> The shortseller lost a huge chunk of money and disappeared .
>
> All those bad news the shortsellers used disappeared as well . <br/>
>
> Can the good guys win the war ?
>
>
>
>

Wall Street Breakfast: Must-Know News

Naked short selling is history as of opening bell tomorrow. As my suspicions tell me that Etrade, as well as other financials, have been victimized by "Naked" short selling, we may see some releif.

news.yahoo.com/s/nm/20...




On Jul 15 04:56 PM RightinSanFr ancisco wrote:

> Unfortunately, over the next several years we will need to work through
> two economic realities:
> 1. We will need to export as much as we import. The dollary must
> decline.
> 2. We are major debtors at personal and governmental levels. Thankfully
> corporate balance sheets (ex banks) are fine.
>
> Aside from the level of pain and the duration, a big question will
> be whether we stay as committed to free market capitalism. Pessimists
> would say - not in a democracy.