patrickpt10

Today's Correction Was Liquidity Driven

i think this is a category 2 storm right before the build up to a category 5 storm. today i started to hear the words " short surge " on cnbc. this was in reference to those who short the market. august 15th is coming quickly shorts.

Is This the Start of a Bear Market?

In it's report, the BIS used a controversial word “Depression” (and they avoid inflammatory words like the plague) to describe what they thought might happen if US Real Estate and related financial markets were to meltdown. It is not exactly rocket science to understand that such horrific mark downs of major portfolio holdings would trigger catastrophic margin calls on leveraged portfolios. In turn, this would meltdown all securities in the US and globally, in that they would have to be sold in a non-orderly manner on a massive scale to satisfy said margin calls. This process would be a never ending cascade of more calls triggering more calls.

Is This the Start of a Bear Market?

it seems that almost immediately after the sec voted 5-0 to change this reg sho rule that this volatility began to rear its ugly head.
if i remember correctly the sec at first denied the existence of naked short selling, then they realized it maybe a problem but not that big of a deal to ok we better take a harder look at this to finally saying ohh chit we got a problem. which brought us to the rule change.
i am in 100% agreement of the rule change, what i dont agree with is the silence from the sec now. why hasnt there been a public statement on major media and news papers across america so us investors might be a bit more informed about the situation. there may be a reason the facts on this (nss) issue are very difficult to find. they (sec) are scared.

Is This the Start of a Bear Market?

do you think any of this market decline has any link what so ever to naked short selling or the issuance of counterfeit shares into the market?

reg sho rules just changed and is now in the federal register.
there is a sub-prime company in california that made some investments based on naked short sales. orange country register carried the story in the last few months.
blogs.ocregister.com/m...