To: carranza2 who wrote (37163 ) 7/15/2008 5:46:56 PM From: TobagoJack Read Replies (1) | Respond to of 219763 oops, they mean to do the deeds, floating trial balloons, because they are insane just in in-trayamazing...the bureaucratic wheels of control will slowly suffocate the efficiency of the market in a bid to support the market. What does this do to the option market, I wonder? Do they never learn? Subject: SEC may extend new short-selling limits to entire market - WSJ reports... The SEC announced an emergency action aimed at reducing short-selling in FNM and FRE stock, and will immediately begin considering new rules to extend new those trading limits to the rest of the market. SEC Chairman Christopher Cox said at a Senate Banking Committee hearing that the SEC would institute an emergency order requiring any traders to pre-borrow stock before shorting FNM and FRE. Cox said the SEC "will undertake a rulemaking to address the same issues" across the market. *story reported on DJ, citing the WSJ Move comes as short-interest is at an all-time high for NYSE Euronext (NYX)-listed stocks. Under current rules, a short-seller must locate shares to borrow, which are later replaced with stock bought at a lower price. Under the emergency order, traders will be required to borrow the stock and the lender would then take it out of the market and not allow other traders to use it to satisfy requirements that they've located stock - on DJ Ah, but it's not a problem when stuff goes up except for the shortsellers of course. This will just make mkts more volatile and cause them to fall further on down days b/c there is no natural buyers in the mkt...ie short sellers covering their positions. This is just a way for the measly little wastrels who create nothing and spend everything to justify their stultifying and uncreative existences. I suspect the political pressure brought to bear on the SEC and other regulators to be doing something, anything, is just to great at this time. I agree, capital will just migrate elsewhere, the speed of exit depending on how draconian the rules become. This is fast becoming the United Socialist States of America. what's next restrictions on selling credit/buying protection??