Wednesday, September 30, 2009

Goldman's "Naked Short Selling" Strawman

Zero Hedge

Matt Taibbi has put together a very informative piece on Goldman's lobbying attempts, specifically in the context on the upcoming discussion over naked short selling. The contention here by the majority is that naked short selling, or NSS, promotes bear raids on crippled companies which tend to feed upon each other, with CDS traders also joining in the fray. The argument is a dramatic oversimplification and has little substantiation by facts. "Bear raids" occur only and exclusively in financial stocks: why can't you have a bear raid on a firm like Coke or Johnson and Johnson, or even some leveraged behemoth like Hertz.

As an side, full disclosure before Hertz sues us like it did Audit Integrity for daring to mention that it is a prime bankruptcy candidate: we fully recognize the company's tremendous cash flow potential, its amazing assortment of non-rapidly amortizing fleet vehicles, it manageable capital structure, its absolute lack of reliance on pristine credit markets, and the fact that GM is now entering the rental arena courtesy of GM's 60 day money back guarantee is only a synergistic positive: after all the definition of fleet sales is completely irrelevant for a post-bankruptcy Detroit 3 monster. Hertz is a titan of a company and its prospects foreshadow a future so bright we've gotta wear shades. Zero Hedge however feels for third party research companies like Credit Sights, GimmeCredit, or KDP which may feel otherwise. We hope Hertz' legal team smites them like the irresponsible cockroaches they are if they ever dare to issue a negative report on such a stalwart of American Kapitalism.....

Please...Also link to Matt Taibbis' findings on the SEC meeting. I will continue to post as this emplodes.

My personal take at this juncture, is its difficult to distinguish from 'their' Arrogance an/or Ignorance...they've been slipping a lot lately and even though they are a tool they are defining the map that leads to the wizards of oz...this 'should' be unacceptable to their masters.

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