Posts filed under “Taxes and Policy”

No Shorting. That’s the Rule.

A long/short hedge fund manager of my acquaintance went to short some Morgan Stanley (MS) via a B/D that clears through Wachovia:

The Trader comes back: "Wait a second — that’s on the list — I cant short that."

The Fund Manager says: No, I don’t want to Naked Short it, we have already located a borrow — this is a clean, legitimate short sale.

Trader: Nope, we clear through Wachovia — and its on the list – NO SHORTING THESE 19 PRIMARY DEALER NAMES — PLUS FANNIE AND FREDDIE — AT ALL.

Fund Manager: That’s ridiculous — how can you not execute a legitimate   borrowed short?

Trader: Wachovia. Dems da rulez. You have to go elsewhere.

Fund Manager: Consider it done.


Postscript:  FM added to his Morgan short elsewhere, and initiated a new Merrill Lynch (MER) short. I don’t know what it says about Wachovia that they won’t even allow shorts in those names (deep doodoo??).

I am paraphrasing Jim Grant, but "Shorting is the financial world’s equivalent of free speech."

Category: Short Selling, Taxes and Policy, Trading

No Recession? No Inflation? Don’t Make Me Laugh!

Category: Consumer Spending, Data Analysis, Earnings, Economy, Taxes and Policy

WSJ: States Slammed by Tax Shortfalls

Category: Consumer Spending, Economy, Real Estate, Taxes and Policy

End of Illusions for GSEs

Category: Bailouts, Credit, Real Estate, Taxes and Policy

Economic Witch Hunt

Interesting discussion:

"The political establishment is embracing a time-honored response to the nation’s economic turmoil. It’s going on a witch hunt.Politicians of all stripes worry that improper trading by short sellers has contributed to turmoil in the stock markets. And "excessive" oil traders have replaced oil-company executives — themselves twice keelhauled by congressional committees this year — as the bogeymen behind the run-up in gas prices.  For Washington veterans, the sharpened attacks are the incarnation of a standard political trope, one found especially in election years"

Economic Woes Get a Fix: Witch Hunt
WSJ, July 19, 2008; Page A3

Category: Markets, Taxes and Policy, Video

Bailout Nation: Treasury, SEC on Bailouts

I did three segments Tuesday on Yahoo Tech Ticker at the Nasdaq: 

Here is the last, on Bailouts, Fannie & Freddie:

Click for video

Bailout Nation: Paulson, Cox, Shorts Weigh in On Fannie, Freddie
Aaron Task
Yahoo Tech Ticker, Jul 15, 2008 07:00am EDT,FRE,GM,TM,%5EDJI,%5ESPX,XLF

Category: Bailout Nation, Books, Credit, Federal Reserve, Taxes and Policy, Video

Ethanol DeathWatch Map

Category: Commodities, Energy, Taxes and Policy

A Nation of Whiners? No, Just Wall Street Beggars

Category: Bailouts, Credit, Derivatives, Markets, Taxes and Policy

Idiots Fiddle While Rome Burns

Category: Credit, Derivatives, Federal Reserve, Politics, Taxes and Policy

Quote of the Day: Bailouts

Category: Politics, Taxes and Policy