CNBC: Calpers no longer lending to shorts on GS MS

Quote from poyayan:

Short selling is legal.

Calling your share in to prevent lending them to short sellers is also legal..:)

No doubt they should do that if they feel it will benefit them. They should not however, go on TV pounding the table about "prederatory short selling" when they do not have evidence of it. That is rumor mongering to the long side and is illegal I believe.
 
The Heat IS ON

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Tell me can you feel it?


:D

The heat is on, on the street
Inside your head, on every beat
And the beat's so loud, deep inside
The pressure's high, just to stay alive
'Cause the heat is on


Oh-wo-ho, oh-wo-ho
Caught up in the action I've been looking out for you
Oh-wo-ho, oh-wo-ho
(Tell me can you feel it)
(Tell me can you feel it)
(Tell me can you feel it)
The heat is on, the heat is on, the heat is on
the heat is on Oh it's on the street , the heat is - on

Oh-wo-ho, oh-wo-ho
Caught up in the action I've been looking out for you
Oh-wo-ho, oh-wo-ho
(Tell me can you feel it)
(Tell me can you feel it)
(Tell me can you feel it)
The heat is on, the heat is on, the heat is on
Oh it's on the street , the heat is - on

The shadows are on the darker side
Behind those doors, it's a wilder ride
You can make a break, you can win or lose
That's a chance you take, when the heat's on you
When the heat is on


Oh-wo-ho, oh-wo-ho
Caught up in the action I've been looking out for you
Oh-wo-ho, oh-wo-ho
(Tell me can you feel it)
(Tell me can you feel it)
(Tell me can you feel it)
The heat is on, the heat is on, the heat is on

It's on the street
The heat is on, the heat is on, the heat is on
Yeah it's on the street
The heat is on
 
Quote from ASav:

No doubt they should do that if they feel it will benefit them. They should not however, go on TV pounding the table about "prederatory short selling" when they do not have evidence of it. That is rumor mongering to the long side and is illegal I believe.

Well, prederatory short selling is true to some people but not true to other people.

Right now, people who write credit default swap (Think MS and GS ) will need to put up additional capital if their stock fall to certain level or their credit rating get downgrade.

After Paulson's bail out of AIG, the prefer share, bond market, straight up borrowing is closed for MS and GS.

That leaves a straight selling of their asset open only. Hence, the rumor of MS and citic bank.

So, if you trigger these clauses in CDS, MS and GS will need to deplete their cash. If someone start rumors about them losing their cash, their clients will want their cash back too.

IE. That's how a perfectly ok investment back goes BK.

Anyway, check out this link and decide for yourself.

http://www.youtube.com/watch?v=dDd51v7prtI
 
Quote from poyayan:

Well, prederatory short selling is true to some people but not true to other people.

Right now, people who write credit default swap (Think MS and GS ) will need to put up additional capital if their stock fall to certain level or their credit rating get downgrade.

After Paulson's bail out of AIG, the prefer share, bond market, straight up borrowing is closed for MS and GS.

That leaves a straight selling of their asset open only. Hence, the rumor of MS and citic bank.

So, if you trigger these clauses in CDS, MS and GS will need to deplete their cash. If someone start rumors about them losing their cash, their clients will want their cash back too.

IE. That's how a perfectly ok investment back goes BK.

Anyway, check out this link and decide for yourself.

http://www.youtube.com/watch?v=dDd51v7prtI

So, the question I have is why would a perfectly sound and rational company create instruments that are pretty much ticking time bombs if the company's stock price falls below a certain point?

Jesus F#$@ing Christ man: DID ANYONE LEARN ANYTHING FROM THE FALL OF ENRON???
 
Quote from Unhommefou:

So, the question I have is why would a perfectly sound and rational company create instruments that are pretty much ticking time bombs if the company's stock price falls below a certain point?


They are not ticking time bombs unless you come into a financial environment that is under the greatest stress since the Great Depression.

:)
 
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