tag:blogger.com,1999:blog-2335748440449035592.post906933977296101339..comments2008-09-20T06:48:14.984-04:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2335748440449035592.post-65880245888578768682008-09-20T06:48:00.000-04:002008-09-20T06:48:00.000-04:00There should be more regulations for short selling, but make them reasonable so that shorting can still be used legitimately. The problem is with manipulation, not shorting. Reportedly, "action was taken to protect the fundamental integrity and quality of markets and to guard against further instability in the financial sectors”.<BR/><BR/>Lisa<BR/><A HREF="http://www.jobsearchdigest.com/hfsd" REL="nofollow">Hedge Fund Jobs</A>Lisahttp://www.blogger.com/profile/08641464404648506660noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-44689271067001311672008-09-19T05:18:00.000-04:002008-09-19T05:18:00.000-04:00This could really be seismic<BR/>It is long overdue<BR/>Combined with enforcement of new naked short rules (dare to dream) this will finally make the market a fair place (esp for small caps)<BR/>I can't wait to see what shenanigans are uncovered.<BR/>There is a real danger of some serious counterparty risk if some of the wilder naked short scenarios are accurate (will the govt make people whole?)<BR/>We should be careful what we wish for.Kruphttp://www.blogger.com/profile/15522541605698525510noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-7863585139844548812008-09-18T14:01:00.000-04:002008-09-18T14:01:00.000-04:00At the end of the day though, I'm not sure that much more money was made on all this leverge. Whomever provided that example on the house loan where 5 diff banks had a $100K loan out for the same house. So the system reports $500K in loans, but its still just $100K lent to one homeowner. In the end, it would've been more profitable to the system if BAC had just lent the money directly to the homeowner. Well at least for BAC, but not for the over 4 firms. Hard to get arm around all the leverage and the true impact to the system.Stonefoxcapitalhttp://www.blogger.com/profile/00583540825602471042noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-20454610588860736582008-09-18T13:26:00.000-04:002008-09-18T13:26:00.000-04:00Some of each<BR/><BR/>The biggest problem is everyone is levered up in this environment. Hedge funds levered up because if you have $1 billion in assets and you lever 20:1 you have $20 billion<BR/><BR/>you are paid 2% on assets and 20% on performance<BR/><BR/>If you have a Psuedo $20B fund you can ramp that performance up big time. Making 8% on $20B lines the pockets much more than 8% on $1 billion<BR/><BR/>Now everyone is being delevered. Banks are pulling back their funds in hunker mode and hedge funds have to shrink fast for both that reason and their investors pulling out. <BR/><BR/>Again, they don't control the most assets but their sheer weight on the day to day trading causes major dislocations<BR/><BR/>I honestly think the pack attack on certain stocks is a specific group of hedge funds. It doesn't take much to demolish a stock. If you are a $5 Billion hedge fund you are bigger than 98% of the stocks in America. <BR/><BR/>But aside from that right now is a buyers strike. When you lose 5-10% within 48 hours each time you try to buy something why bother anymore? So people are not bothering. Or selling what they have.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-25292622188541812522008-09-18T12:26:00.000-04:002008-09-18T12:26:00.000-04:00mark,<BR/>curious about your position on hedge funds, mainly your third bullet point. could this system really have run for so long without question because they were shielded by wall street? in other words, are hedge funds unwarranted scapegoats or justified being attacked.crappyhttp://www.blogger.com/profile/17601884181311375715noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-88374553726982402992008-09-18T10:58:00.000-04:002008-09-18T10:58:00.000-04:00naked short selling is unacceptable and should never have been tolerated in the first place. Many people are to blame for this. I don't care about the blame, I just hope they'll do something for the future.Jameshttp://www.blogger.com/profile/12148812332636319549noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-8659278317713400712008-09-18T10:56:00.000-04:002008-09-18T10:56:00.000-04:00I hope that the rules get changed. I don't care if GS must loose another 50% of its value if this means that something will be done to solve this problem.Jameshttp://www.blogger.com/profile/12148812332636319549noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-22645804856049200592008-09-18T10:49:00.000-04:002008-09-18T10:49:00.000-04:00Nothing like some good ol' fashioned American greed. Not that it's a new concept or anything. Hold on for a moment as I weep for those who aren't going to be able to upgrade to the 70' yacht this year...ok, better now. I'm glad the SEC is -finally- getting around to acting on this. Then again, that is probably just the result of one group who makes sizable political contributions stepping on the toes of another group who makes even larger political contributions...nevertheless, I'm not going to cry (any more) for these people.Someone Somewherehttp://www.blogger.com/profile/12925623709780529874noreply@blogger.com