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Richard Sachs Cycles

Stress!

Now I know why the A-Train hates Goldman Sachs so much … looks like all the Goldman alums in guv-mint decided to give them a bigger break than they gave Morgan Stanley in determining worst-case scenarios in the recent stress tests performed by the Federal Reserve.

Goldman’s Test Stresses Morgan Stanley

Why did the stress [...]

Do squeeze the shorts

Finally, the SEC does something on which I think both A-Train and I will agree. By placing tighter restrictions on failures-to-deliver and by considering reintroducing the uptick rule, the SEC is taking away the ability for short-sellers to manipulate the markets, but legitimate short-selling should not be significantly hampered.

Short Sellers Squeezed All Around – [...]

Shorts on an uptick

A lot of people say that the recent rally in the stock markets is due to a short squeeze, but The Financial Times says that short interest is on the rise along with the markets. A-Train says it’s a sucker rally, but generally a rise in short interest drives the market down, not up.

In [...]

Okay, this move scares me …

… and I’ll bet that Art has something to say about it as well, and if not the A-Train, then perhaps the cats over at Mad Dog Media … Turkish?

Nothing like giving the guv’mint the right to say “Okay, you’re fucking up, so we’re gonna shut you down and sell you off …”

Tapping [...]

I am now officially a propagandist!

From KeatingEconomics.com:

The current economic crisis demands that we understand John McCain’s attitudes about economic oversight and corporate influence in federal regulation. Nothing illustrates the danger of his approach more clearly than his central role in the savings and loan scandal of the late ’80s and early ’90s.

John McCain was accused of improperly aiding [...]

GS, MS to become banks

This is an interesting twist. Obviously, it means that Morgan Stanley will be subject to more stringent regulation, but I wonder what it fundamentally means for the business model. This will be really interesting to following over the next days/weeks/months.

Goldman Sachs, Morgan Stanley To Be Bank Holding Companies – WSJ.com

The Federal Reserve said [...]

Wall Street Journal calls John McCain “un-Presidential”

McCain’s Scapegoat – WSJ.com.

John McCain has made it clear this week he doesn’t understand what’s happening on Wall Street any better than Barack Obama does. But on Thursday, he took his populist riffing up a notch and found his scapegoat for financial panic — Christopher Cox, the chairman of the Securities and Exchange Commission.

[...]

Rescue Me

Rescue Me: A Fed Bailout Crosses a Line

WHAT are the consequences of a world in which regulators rescue even the financial institutions whose recklessness and greed helped create the titanic credit mess we are in? Will the consequences be an even weaker currency, rampant inflation, a continuation of the slow bleed that we have [...]

More Bear Woes

Wall Street Ponders Extent Of the Woes At Other Firms By SERENA NG and JENNY STRASBURG March 15, 2008

Behind the swift decline of Bear Stearns Cos. is a deepening worry on Wall Street that some financial institutions might not be able to make good on their commitments.

Such angst about the health of an [...]