Thursday, September 18, 2008

Live Together, Die Together....?

. Thursday, September 18, 2008

Remember that factoid of money markets "breaking the buck" the other day?  Well, central banks around the world didn't take the news lightly, as the NY Times reports today.

Wow, look at all the tacit cooperation going on!  And the turn towards government regulation doesn't stop there.  The SEC has brought back rules against naked shorts, which are basically a strong bet on a stock going to zero.  Now there's talk of making all hedge funds publish their short positions - all in the hopes that those pesky speculators won't be able to destroy stock prices so fully and so quickly.  (Really, though, the most effective regulation might be to take a page from Russia's playbook and just shut down the whole exchange for a week.)

On last interesting tidbit - is anyone else struck by the news that Morgan Stanley (the investment bank that advised the government in the AIG deal) is now looking for buyers, possibly in China?


Live Together, Die Together....?




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