Today the SEC announced a temporary ban on short selling of 799 financial stocks. This is, of course, a desperate move to create securities market stability. The ban will be in place until October 2. Its just delaying the inevitable, in my opinion. Without getting technical, long position holders in financials are going to be pissed because they have no temporary hedging vehicle in a market where one cockroach has turned into a thousand.

As, as I write this, I see a headline coming across the Bloomy saying that the Fed is going to buy Fannie and Freddie debt. Can we still short the dollar?

We are ƒµ©κεδ.

Edit @ 9:35 AM: Something smacks of convenient timing here. Look for WaMu, Morgan Stanley, Wachovia and all the other guilty parties to possibly take the opportunity to take a bath during this very convenient market opportunity (ie. before Oct 2).