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Richard Sachs Cycles

Short sale ban may not work

In news that’s sure to make A-Train happy; or at least allow him to say “I told you so”:

SSRN-Shackling Short Sellers: The 2008 Shorting Ban by Ekkehart Boehmer, Charles Jones, Xiaoyan Zhang

In September 2008, the U.S. Securities and Exchange Commission (SEC) surprised the investment community by adopting an emergency order that temporarily banned [...]

Morgan Stanley to Raise $2.2 Billion in Bid to Exit TARP

Not entirely happy by the potential dilution to my stake in my company, but certainly happy that if all goes as planned, we will be able to exit TARP by month-end.

Morgan Stanley to Raise $2.2 Billion in Bid to Exit TARP – WSJ.com

Morgan Stanley plans to raise $2.2 billion stock offering, in a [...]

Details, please!

Geithner Sets Out Sweeping Overhaul to Bank Bailout – NYTimes.com

WASHINGTON — The White House plan to rescue the nation’s financial system, announced on Tuesday by Timothy F. Geithner, the Treasury secretary, is far bigger than anyone predicted and envisions a far greater government role in markets and banks than at any time since the [...]

The return of economic nationalism

The return of economic nationalism | The Economist

MANAGING a crisis as complex as this one has so far called for nuance and pragmatism rather than stridency and principle. Should governments prop up credit markets by offering guarantees or creating bad banks? Probably both. What package of fiscal stimulus would be most effective? It varies [...]

I prefer pancetta to panaceas …

Looks like Paulson has taken at least one stance with which the A-Train shouldn’t have too many problems (if any), and while in many ways I disagree with the Train about how to fix the problem, in this particular situation I think we’re probably both on the same page.

Bloomberg.com: Paulson Warns TARP Isn’t ‘Panacea’ [...]