The AP reports, one hour ago:
SEC extends restrictions on short-selling
By RICHARD JACOBSEN – 1 hour ago
Federal regulators on Tuesday extended through mid-August a temporary order banning a certain kind of short-selling of the stocks of mortgage finance companies Fannie Mae, Freddie Mac and 17 large investment banks.
The Securities and Exchange Commission said the ban on so-called “naked” short selling will be in effect until 11:59 p.m. EDT on Aug. 12 and will not be extended.
Short sellers make a bet that a stock’s price will fall so that they can profit from it. They borrow shares of the stock and sell them. If the price drops, they buy cheaper actual shares to cover the borrowed ones, pocketing the difference….
What it’s actually about is VULTURES and other carrion feeders of Wall Street. The actual point isn’t this story, but, rather, that what you are seeing is the equivalent of a coal-seam fire. It burns but you can’t see it until it appears aboveground. The dominoes are crashing as the banking system and “drunken” Wall Street reel from the consequences of their metaphorically crapulous behavior.
As I’ve noted before, now that the brown stuff is hitting the rotating blades, the financial press WILL NOT tell you what is happening, lest they be BLAMED for causing a “panic” by telling you the truth.
This is the perversity of unrestrained capitalism, and the financial press.
But be forewarned, and continue to be afraid.
It’s been great for the economy so far, right?