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    • A First Look At How the SEC's Rules Are Working [view article]
      >>>On short selling in general, we believe that it is fine to short a stock if you think a company will likely go out of business. What's not okay is to short something in order to make it go out of business.


      This is just not a practical approach to the problem unless you have a Thought Police Force that can actually look inside people's thinking (so much for privacy).

      There needs be clear rules which, if broken, must bring retribution. Short selling, i.e. selling shares someone lent you, is perfectly legal and valid and there is no reason for interfering with this activity. The problem is NAKED short selling and the SEC has aided and abetted this criminal activity for years.

      My solution is to hold both the broker and the short seller to account. If the shares are not delivered in the required time, the sale must be reversed and both the broker and the short seller should pay a file of, say, 25% each of the amount of the sale. That would stop NAKED short selling in its tracks.

      The way I see it, not all NAKED short selling is because sellers think the stock is going to go broke. It could well be half of a hedged option trade. Stopping NAKED short sales would hurt many interests, which is likely why the SEC has not enforced the rules, it would hurt their regulated industry and regulation was never meant to protect the public. Anyone who still believes that, well, I have a couple of pretty bridges to sell them.       Sep 19 09:34 AM
    • What Should an Investor Do in Times of Panic? [view article]
      >>>Trading when fear, panic, and rumors have taken over doesn't make much sense because prices are not based on reality but rather perception.


      Prices are always based on perception! On perceived value which may or may not turn out to be accurate. If you find a fellow who is willing to buy the stock for more than you paid for it, you win. If you can't find such a fellow and insist on selling, you lose.

      Markets are based on exchange value only.       Sep 19 08:48 AM
    • Friends Don't Let Friends Buy Stocks - Look at State Street [view article]
      If you are not the panicky type, you could have doubled your money on STT today. The low was 29 and the close 59. Sep 18 10:12 PM
    • The Financials, the Automakers, and the Call That Cramer and All of CNBC Got Wrong [view article]
      Cramer seems to be addictive. I'm sure glad I don't have a TV set. The number of man hours wasted on Cramer is appalling! Sep 18 11:35 AM
    • The AIG Bailout: Advice from Buffett, Munger and Grantham [view article]
      Buffett, Munger and Grantham are not talking the REAL cause of the current mess. The cause is the desire for safety and equal outcome. Everyone is entitled to a home, a job , medical care, etc, etc, etc. Your bank accounts are also protected by the government, you have the FDA to make sure all drugs are safe, you are paid millions for being stupid enough to spill hot coffee on yourself, if you are a banker you can discount your trash at the Fed, if you are a financial CEO your pay is not tied to results, you get a golden parachute no matter what and on and on and on.

      Quite simply the necessary feedback mechanisms have been short circuited and the results should have been expected, an engine with no breaks on it, no governor, a loose cannon.

      There is no free lunch.       Sep 17 10:51 AM
    • Serendipitous Sundays for Financials [view article]
      If you are going to give money away you should give it it the rich because they know how to handle money. Give money to the poor and they just spend it and stay as poor as ever, a total waste of time and money. :)

      Taleb was right on the money with his bad financial black swans.       Sep 14 07:40 PM
    • Need for Student Loans Should Boost First Marblehead Stock [view article]
      >>>Our last stock pick, Washington Mutual (WM), back on July 14 for our Stock Picks Portfolio, gave us a great head start with a 3-day return of 65.94%.

      I hope you took your profit because that was a dead cat bounce. WM is now down 15% from July 14th.


      >>>I believe that with the eminent reversal of the credit scare in the next couple of years...

      I wonder what makes the reversal of the credit scare so "famous and respected?" You probably meant "imminent" but several eminent market commentators think otherwise. But if did mean "imminent" then it should not take a couple of years as you say. Imminent means soon, not two years down the line. So maybe you are fishing for another word. How about "inevitable?"... Let's try it out:

      >>>I believe that with the inevitable reversal of the credit scare in the next couple of years...

      Yea, that sounds better. :)

       Sep 14 07:31 AM
    • Bailouts Slope: Slippery, and Expensive [view article]
      Mish, the whole idea of "too big to fail" needs reviewing. The American taxpayer is hostage to the big Wall Street banks and their FED cartel.

      The "too big to fail" syndrome transfers the risk from the banks, where it belongs, to the taxpayers without their voluntary agreement to underwrite these risks.

      IMO, this requires a grass roots taxpayer revolt but the reason it will not happen is that the taxpayer also feeds at the trough in the form of FDIC insurance, Social Security, Medicaid, Medicare and hundreds of other wealth transfer arrangements.

      Until Americans learn to be self reliant once again, there is not much hope of salvaging the system.       Sep 11 02:19 PM
    • Bailouts Slope: Slippery, and Expensive [view article]
      mcadoo3312, you must have missed all the gross begging and groveling for a bailout coming out of PIMCO/Gross lately. Sep 11 02:08 PM
    • Urban Outfitters Bucks Sagging Retail Trend [view article]
      Gee, I saw the very same charts in Zacks today. We need a few more analysts talking up the stock and then it will be time to sell covered calls.

      Oh, this Seeking Alpha piece IS by Zacks... If it's only one analyst talking up the stock, forgetaboutit.       Sep 11 11:32 AM
    • Calling a Bottom: It's Time To Party [view article]
      Tom Brown of Second Curve Capital called the bottom July 15, 2008. So far he is right. Sep 10 04:30 PM
    • Problematic GSE Bailout [view article]
      I really don't see the logic or fairness of protecting one class of investors while wiping out another class. The message is: "Don't ever buy shares of financial institutions, specially if they are close to the government."

      If you were to let the game play out, the shareholders might, indeed, get wiped out but the bond holders would also suffer massive losses and that's the way it should be. By intervening, the Treasury is giving way too much protection to the bond holders.

      It is interesting to note that in the case of Bear Stearns the Government decided to give those shareholder a $10 gift per share.

      I'm afraid that any logic or equity (pun intended) in the financial markets has gone AWOL.       Sep 07 12:12 PM
    • Fannie & Freddie - and Others - Overstate Their Capital Base [view article]
      Some investors buy shares and they get wiped out.

      Other investors buy debt and they are protected by Uncle Sam.

      Some, but not all investors in preferreds apparently will also be protected by Uncle Sam.

      I fail to see the logic or the equity of this solution. Why are debt buyers and selected equity buyers worth protecting? The only logic behind such discrimination is that financial institution, national and foreign should get preferential treatment while the hoi polloi can go to hell. Some of the hoi polloi with deep pockets should sue the US Treasury Department maybe even use a class action suit.       Sep 07 11:56 AM
    • Bill Gross: Politicking for His Own Bailout [view article]
      Bill Gross is gross in his begging and groveling. The man loves a handout. Sep 05 05:06 PM
    • Browser Wars: What Are They Good For? [view article]
      Chrome is not about browser wars but about OS wars.

      There is high level of incompatibility between browsers and designers waste incredible amounts of time to get their pages working on all the major browsers. That's why you don't see this issue.

      How do companies make money on browsers? Beats me! But that is like asking how MacDonald's makes money on the rest rooms... You gotta have 'em...       Sep 04 09:12 AM
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