from http://incakolanews.blogspot.com/ - I agree completely with the author - why now when this illegal activity has been going on for so long!
Tuesday, July 15
Something is rotten in the State of Denmark
(Hamlet, act one scene 4, 87-91)
I can't resist this non-LatAm comment. The SEC has decided to issue an emergency ruling to stop naked short selling of financial stocks (eg Fannie, Freddie and other empty shells). They will do this by insisting that anyone wishing to short the stock registers themselves as borrowers before the transaction goes through, and on the settlement date the shorter delivers the securities.
This is more than interesting, because this type of naked short selling is already considered illegal by the SEC (Google the SEC rule 'NASD 3370' and find out for yourself). So with today's ruling what the SEC is actually saying is:
- We know it's been going on under our noses.
- We haven't done a thing to stop it all this time.
- We have a good mechanism to stop it.
- Now that it's affecting our friends in the financial sector, we're going to do something about it.
Be in no doubt: The US Federal Reserve is now officially crapping itself with fear.
