In what looks to be the most ridiculous comment of the day by the US Financial system's said leadership, New York's Attorney General, Andrew Cuomo, is asking the SEC to "freeze short selling" in the US Financials!
Are you kidding me Andrew? Do you have any idea what this kind of reckless political rhetoric can do to the market? If you think Long Term Capital Management blowing up was a problem, go right ahead and test your politically convenient theory here and see what happens if the entire hedge fund community has to pull their hedges.
Worse yet, consider the implications to the few money managers and individuals out there who have proactively hedged their portfolios for what has turned out to be an unmitigated disaster in risk management by the executives of our publicly held investment banks.
We cannot continue to manage this Financial Crisis reactively. Now that John McCain has thrown his thought partner, George Bush, under the bus today, I have no idea who is going to provide some sensible, calming, proactive leadership – but, boy, do we need it, fast!