Ban on Short Sales of Financial Stocks

2

25inIrvine_IHB

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<a href="http://www.businessweek.com/ap/financialnews/D939SJK85.htm">SEC bans short-selling of 799 financial stocks</a>





part of their defense reminds me of Allied Capital's defense against Greenlight Capital when GC shorted AC



I'm not sure who has read it, but it is an interesting read. The defense was basically GC was trying to lower the Allied Capital because they stood to make a profit, and blah blah blah....the legal system actually ends up siding with Allied Capital, but the story in between is great.



http://www.amazon.com/Fooling-Some-People-All-Time/dp/0470073942





Either way, good stuff.
 
I guess CGM Focus will need to find another way to get an 80% return. I believe most that 80% return in 2007 was from shorting WaMu.



http://finance.yahoo.com/q?s=cgmfx&d=t
 
[quote author="24inIrvine" date=1221871602]I guess CGM Focus will need to find another way to get an 80% return. I believe most that 80% return in 2007 was from shorting WaMu.



http://finance.yahoo.com/q?s=cgmfx&d=t</blockquote>


It was also from shorting Countryfried. I love that fund. I think Ken Heebner is awesome. I think Chris Cox should go back to Russia and stay there.
 
[quote author="24inIrvine" date=1221869516]<a href="http://www.businessweek.com/ap/financialnews/D939SJK85.htm">SEC bans short-selling of 799 financial stocks</a>





part of their defense reminds me of Allied Capital's defense against Greenlight Capital when GC shorted AC



I'm not sure who has read it, but it is an interesting read. The defense was basically GC was trying to lower the Allied Capital because they stood to make a profit, and blah blah blah....the legal system actually ends up siding with Allied Capital, but the story in between is great.



http://www.amazon.com/Fooling-Some-People-All-Time/dp/0470073942





Either way, good stuff.</blockquote>


I read the book. It is an excellent read. The government is basically worthless and asleep at the wheel. The SEC needs to be broken up. It has been all over the map on the naked shorting issue and has only acted on it when their bedfellows have been harmed.
 
[quote author="24inIrvine" date=1221871602]I guess CGM Focus will need to find another way to get an 80% return. I believe most that 80% return in 2007 was from shorting WaMu.



http://finance.yahoo.com/q?s=cgmfx&d=t</blockquote>


I'm sure CGM Focus spent a lot of resources to figure out WaMu's position and establish their risk on the position to net that 80% return in a year return.



And I'm sure some Joe Sixpack gamblers just netted that 80% return in TWO DAYS just by ganbling on a little nudge by the government.



Market is dead.
 
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