“Naked short selling” is not a more fun version of “short selling”
May 20, 2012
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Matt Taibbi, the guy who loves to write about the 2008 financial collapse, writes about a fortunate (for us!) and unintended release of documents:
Accidentally Released – and Incredibly Embarrassing – Documents Show How Goldman et al Engaged in ‘Naked Short Selling’.
I’m reading this and thinking “how did we get here?” This practice, naked short selling, should not be possible. It’s beyond belief that no regulatory agency or law in the US has made this illegal.
Add to the above I finally watched Inside Job yesterday. The entire situation just boggles the mind. The people that caused the financial collapse of 2008 came out of it without being prosecuted and with more power and money than before.
This isn’t one of those Republican rants. In this case, both the Democrats and the Republicans set the stage for the financial collapse and neither of them are willing to do anything about the conditions that made it possible. Glass-Steagall was repealed during the Clinton’s last term, with his blessing. Some are calling for the return of the depression-area limits on what banks can do in the investment arena. I really hope they do bring it back, but I’m not going to hold my breath. The foxes are in charge of the hen house, with the revolving door between Wall Street and top finance positions in the government.
It will happen again. We will say “why didn’t we do something last time?” and nothing will be done again. The only way to fix this, is to outlaw lobbying of Congress. Congress needs to do their own research on problems and vote the way that best represents their constituents. Not holding my breath on that one, either…