August 9, 2008
THE SEC'S HAND IN THE 2007-2008 BEAR MARKET IS ALL TOO CLEAR.
Did The Securities and Exchange Commission's Changes To SHort Sale Rules Make The Recent Decline Much Worse?
Who Polices Insider Trading Crime Done by The SEC?
SEC Chairman, Christopher Cox is a LIAR. Why is he more concerned about protecting Wall Street crooks than finding them?
========================================================
1) By lifting the ban on short sales on down ticks they gave the "green light" to "Bear Raiders", the bane of the early 1930s until legislation banned short selling
on down-ticks.
2) By not enforcing rules that require short sellers to borrow the stock they sell short, they have given Bear Raiders access to all the stock they want.
3) SEC Chairman Cox LIED on CNBC when he said naked short selling was not illegal. He has now chosen to enforce it selectively.
4) When 3 days ago, they banned naked short sales in key bank stocks, the reaction was immediate. Some bank stocks have risen more than 50% in the three days since,
5.) Look at the high volume in finance stocks. The word got out in advance of the SEC action to ban naked short sales in certain finance stocks. Compare their volume
the day before with those finance stocks that were not so honored.
This appears on my site:
http://www.tigersoftware.com/TigerBlogs/July-18-2008/index.html