Wednesday, September 24, 2008

Bears losing their shorts

1) Last Friday Rydex followed suit with Proshares and stopped purchases of new shares of its Inverse Financial ETF (ticker RFN).

2) According to Bespoke Investment Group, almost 20% of the stocks in the S&P 500 are now off limits to short sellers.

1 comment:

Tim said...

The Federal Reserve is now actively draining cash from the system intentionally!

http://www.newyorkfed.org/market...arket...mo/dmm/ temp.cfm

Normally the Fed conducts Temporary Market Operations int he form of Repos. where it takes securities (and now Equities!!) at the Fed window and allows the primary dealers to mark the value (ridiculous!) and then gives back that amount to them in cash.

Well in a reverse repo the opposite happens...they are borrowing money from the same primary dealer/brokers at a time where they supposedly need cash.

The spike in the TED spread all but confirms this.

http://www.bloomberg.com/apps/qu...cker=.TEDSP: IND

This is a highly manipulated scheme that is being played to make this bill pass. The Fed has already done repo's in excess of $3 trillion in the last year alone.
$700B is going to fix this??
Hardly.

Passed to me by someone else...