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WSJ study sez zero-down mortgages, not subprime or resets or other elements, were the major cause of the meltdown.

Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
by Drew J Jones (myfriends@thisispancakes.com) on Fri Jul 3rd, 2009 at 01:00:45 PM EST
Mish's Global Economic Trend Analysis
Who Are The Short Sellers?

Inquiring minds are asking, who is doing the bulk of short selling?

It's a good question, too. And I have an answer: The market makers like Goldman Sachs, Citigroup, and Merrill Lynch.

Yes, the whiners complaining about short selling are doing the bulk of it! For every buyer there is a seller, and when markets are screaming higher, the market makers are frequently shorting as a pure function of what they do. Moreover, when people buy PUTs, the market makers selling those options short stock as a hedge.

Not only are the market makers shorting, but these actions are where the bulk of naked shorting comes from.

By the way, the SEC initiated a huge short squeeze once before by restricting shorts on financials. Guess what happened when the short squeeze ended and Goldman Sachs, Citigroup, and the other market makers were the ones left holding the shorts? The market plunged is what.

wha?

~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~

by melo (melometa4(at)gmail.com) on Fri Jul 3rd, 2009 at 01:37:27 PM EST
[ Parent ]
A Snake Eating Its Own Tail - Clusterfuck Nation
Top Ten Signs You Are Living in a Banana Republic.
Why only ten? While there are certainly countless other signs that our country is a banana republic worthy of comparison to other ignominious, run-down, despotic regimes where the plutocracy plunders the treasury for its own interest, the American audience has an attention span of less than 30 seconds, is addicted to Ritalin and Adderall, and therefore has a penchant for lazy summaries and cliff notes. Have we lost you yet? Without further adieu:
10. Zimbabwe-the archetypal banana republic and the home of the $100 Billion omelet-praises recent US FED action. So the FED-which likely 90% or more of Americans have no idea of what it really is, its role, who controls it, or how it is accountable to taxpayers-prints over $1.2 trillion (with a T), and Zimbabwe declares, "Banks, including those in the USA and the UK, are now not just talking of, but also actually implementing flexible and pragmatic central bank support programmes where these are deemed necessary in their national interests. That is precisely the path that we began over 4 years ago in pursuit of our own national interest and we have not wavered on that critical path despite the untold misunderstanding, vilification and demonization we have endured from across the political divide." Not the kind of endorsement we desire to restore confidence in our financial system.

my bold

can't make it up...

~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~

by melo (melometa4(at)gmail.com) on Fri Jul 3rd, 2009 at 02:01:55 PM EST
[ Parent ]

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