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:

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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

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What's been said:

Discussions found on the web:
  1. Whammer commented on Jul 18

    BR, it looks like you have posted three of these, but you have labeled them the first, first, and third segments.

    Am I confused? Did you double-post the first segment or mis-label the second?

    In other words, WTF? :-)

  2. Barry commented on Jul 18

    Here are all three

    Part I:
    Wild Times on Wall Street: What Now for Investors?

    Part II:
    Ben Bernanke vs. the Three-Headed Monster

    Part III:
    Bailout Nation: Paulson, Cox, Shorts Weigh in On Fannie, Freddie

  3. Jeff commented on Jul 18

    Did I just hear the talking heads on CNBC (and Cramer) talking about how Cox isn’t going to allow ANY (even legal) shorting of some (19) of the banks? Did I hear that right? Is that even legal?

    Does that mean I’m screwed being in SKF right now and should go long financials again? Tough to win when they rig the game.

  4. cinefoz commented on Jul 18

    I love the sound of whiners who discover their victim just started locking the back door. They get soooo mad at the person who locked the door for having the audacity to keep them away from their swag.

    I’m sure the piggies think that if the good Lord didn’t want people to take whatever they felt like, they wouldn’t have given some of them the ability to do it. Then, they WHINE and WHINE and claim they’re being victimized by the lock makers. All I hear is the squeal of piggies being chased away. Run piggies run.

    BTW piggies, thanks for the wreckage. While your damage may not have been appropriate, there is no law against me with all my free cash being able to filter through it and get a few gems at a big sale prices. I think this is going to be a great year after all. Not so good for some of the piggies, I bet.

    Oil is down at the close, again. It is down from a big assed double top. HA HA HA HA HA. Financials are spent now as tools of manipulation. All we need to put a bow on it is another subpoena or two, just for grins.

  5. cinefoz commented on Jul 18


    Thanks for letting me be a smartass on your dime. You are a person of excellent character.

  6. Jeff commented on Jul 18

    I wouldn’t do a jig just yet, Cinefoz. Oil goes back up over $147 if/when Bush/Cheney decide to bomb, bomb, bomb Iran before leaving office and then the oil “piggies” once again have the keys to your so-called “back door”. Just something to ponder.

  7. cinefoz commented on Jul 18


    If GWB bombs Iran, directly or via Israel, then everything goes to cash immediately. A big part of me also thinks he is insane enough to leave another war as his legacy, just so he can set the agenda for the next President and do what the voices in his head have been telling him to do since he stopped drinking.

  8. Jeff commented on Jul 18

    Exactly. Any “normal” or even mediocre/bad president wouldn’t dare bomb Iran with everything else that we’re dealing with right now, but as we’ve unfortunately seen time and time again over the past 8 years, this president “marches to the beat of his own drummer”. I wouldn’t put it past he and his little neo-con cabal to do this, especially if they think Obama is going to win in Nov.

  9. MAS (Seattle) commented on Jul 18

    Looks like you’ve leaned out this summer.

  10. Dave commented on Jul 18

    Be nice if that vampire looking dude would have not interrupted you so much.

  11. Roger commented on Jul 18


    In this interview you discuss if FANNIE and FREAKY go under there would be no secondary market for Mortgages.
    In capitalism, if there was demand, wouldn’t supply appear to meet it? I want to see the perfect market in action.

  12. catman commented on Jul 18

    Cinefoz – Besides being a sort of a boring one way streeter, you might want to read the NYT op-ed page today for the Israeli point of view on Iran. Then try extrapolating the consequences.

  13. catman commented on Jul 18

    Cinefoz -Missed your last post, vut what king of fills are you hoping for.

  14. Stuart commented on Jul 18

    Free and fair markets, RIP. Paulson, Bernanke and COX… fascists.

    From Mish’s blog.

    SEC Issues Order To Protect Those Most Responsible For Naked Shorting
    Emergency Order amended
    WASHINGTON (Dow Jones)–An emergency order issued by the Securities and Exchange Commission to impose new restrictions on short sales in 19 stocks will not apply to bona fide market makers, the SEC announced Friday.
    The SEC amended the order at the recommendation of its staff to shield market makers from the new restrictions, which will take effect on Monday and could last for up to 30 days. It said the change was made to allow market makers “to facilitate customer orders in a fast-moving market without possible delays” that might come from complying with the emergency order “and to prevent substantial disruption to securities markets.”

    Lets all read that again, especially the part about exempting bona fide market makers. Fully in agreement on naked shorting, but restricting short selling in total to everyone else but these 19 PDs is in your face double standard. Pigmen and their ilk vs. everyone else. Below was taken from Mish’s blog on this topic. If correct and I think it is given how the the amended order was worded, it is beyond outrageous. It is fascism at its finest. 1776 all over again.

    “The naked short selling saga continues. If the SEC was attempting to initiate a short squeeze in financials during options expirations week, it managed to do just. See Short Squeeze In Financials Continues.
    Fannie Mae is up another 25% today to $13.66 in the wake of Selective Enforcement of Regulation SHO and Bernanke’s statement: “It’s important for Fannie Mae and Freddie Mac bonds and stocks to rise so they can keep raising capital and aid the mortgage market.”

    Selective Enforcement
    As long as the investment banks and brokers were making money engaging in naked shorting of stocks, there was no problem. However, when the bears began using the tactic against the broker dealers and investment banks, it became time to selectively enforce the existing regulation.
    Today the SEC has gone one step further. (sorry no link for the following)
    The SEC said the exemption covers registered market makers, block positioners and other market makers that sell short as part of their bona fide market making and hedging activities in the affected shares, as well as standardized options on the shares and exchange-traded funds that include the affected shares.

    Bonafide Market makers

    BNP Paribas Securities Corp
    Bank of America Corp
    Barclays PLC
    Citigroup Inc
    Credit Suisse Group
    Daiwa Securities Group Inc
    Deutsche Bank Group AG
    Allianz SE
    Goldman Sachs Group Inc
    Royal Bank ADS
    HSBC Holdings Plc ADS
    JPMorgan Chase & Co
    Lehman Brothers Holdings Inc
    Merrill Lynch & Co Inc
    Mizuho Financial Group Inc
    Morgan Stanley
    UBS AG

    Here’s The Deal
    Anyone in the above list can continue to naked short with full approval from the SEC. No one else can.

    The implications are that the market makers will be accumulating massive quantities of financial shorts as everyone else is squeezed out.
    Looking one step ahead, think what happens to the bid after everyone else is squeezed out and the market makers hold all the financial shorts.
    If the intent of the SEC was to force prices up, it is going to fail big time, in due time. If the SEC’s intent was to temporarily increase the trading profits of the broker dealers, it will succeed.

  15. JC commented on Jul 19

    You have to remember that GWB has already told (warned?) us that he has the courage that future presidents will lack (I guess those little voices told him who those future presidents will be). So now that he is wrapping up his victory in Iraq he still has time to smite down the evildoers in Iran before he turns over the keys to the magic kingdom to someone with less courage and leaves them to sort out the shambles he’s leaving in his wake

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