A few months ago, I noted that a friend of mine was doing some cool reporting on naked short selling.
As it turns out, two things happened.
1) None of you read the articles I mentioned. Not one of you. Of course, there are only three of you, but you should still know better.
2) He was right. Regulators have now frozen short selling altogether (uh, overkill) because they've realized that naked short selling has massively contributed to the destabilized financial sector. (Note to regulators: short selling creates liquidity, naked short selling creates pandemonium. You might want to look into the difference.)
Now that you're paying attention, remember you heard it here first, second or fiftieth: the next generation of Michael Milkens will be going to jail within the next year or two and this time it will be because of naked short selling. Actually, I know it is illegal but don't know if it is a felony. Given the damage to the economy, it should probably be capital punishable. Every crisis has its hangings - glad I'm not one of the hedge fund managers that pulled down $20M/year over the last couple of years - the proletariat are going to drag you through the streets on the way back to the Bastille.
Did I just say I'm glad I didn't get $20M bonuses. Must be late on a Friday...
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7 comments:
I did read the article, I just forgot what they were about. Go Judson; I fully expect to see him interviewed on the Today show and CNN concerning this topic, and to think his wife is my biggest fans
yes, I didn't read it. since when do I understand more than an 1/8 of what is said about the markets? my piece of mind only comes from the fact that any investments we make are so basic they can only be on the up and up...right?
and P.S. I think I AM Katie's biggest fan. (next to you that is.)
I read it.
Wow, that's a lot of reading. I'm amazed. There are three of you, and two of three read it. Both stats were significantly higher than anticipated. :)
um, I didn't read it - what is naked short selling? For some reason Tobias from Arrested Development poped into my head, but I am pretty sure that isn't what you are talking about here. :)
I didn't read the articles you posted because I would need a dictionary of economic terms to understand. I don’t have internet at home and only a 1/2 hour lunch break at work, so it's just not going to happen. Sorry. :)
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