On Short Sellers...
JJC:    Okay, where the confusion has been is that there was an April 11th, 2005 market regulation put out about regulation SHO, which is about failure to deliver... What I think a lot of us who have traded for a living are surprised is that it's very clear, and I'm quoting right from the release, selling stocks short and failing to deliver shares at the time of settlement with the purpose of driving down the security of the price is illegal... That's taken right from the document... I don't know what these emergency powers are, nor do you have to stop doing that 30 days from now...

I think Commissioner Koch should go back over his division market regulation bulletin and realize he's had this power to stop it all the time... But we have had an SEC that's totally laize faire, not caring the least bit about this... Also, just go get the tapes between brokers and clients... I've been saying this for months, again, that would stop the shananeggins... There was no need for emergency powers... Maybe that was a big theatrical thing, but it's right here in the regulations and I think anybody who's ever shorted for a living knows, with the exception of market makers, that you have to call, you have to get stock, you have to borrow... That's not been going on, they suspended that... His uptick rule analysis, sure, it was done during the greatest bull market in history... Perhaps we've got to re-evaluate it in the greatest bear market in 85 years... I'm not saying he was disengenuos, I am saying that he's out of touch with what traders are doing... It's like Bernanke being academic and out of touch with what traders are doing...

This administration systematcially has been involved, I'm not political, I voted for the guy for heavens sake... But this administration has completely decided that the market is fair no matter and it's all coming back to roost and the regulators frankly, are very naive about what really goes on... Sit in on a trading desk for two weeks and he'll understand that his rules could have made the enforcement possible right now... Naked shorting is not illegal... The process of driving down stocks by failing to get the securities and then not worrying about getting the borrow and jamming them down, is illegal... And that's what is going on... The exceptions that he's talking about are market makers... Market makers have always been able to do that... I'm talking about clients, big hedgefund clients, not bothering to get the borrow, slamming stocks down, recognizing that no one cares, it's a free fire zone, you can do whatever the heck you want... And suddenly he comes up with emergency powers... He had the power, it's in the regulations that were written for the SEC... But the SEC had always looked the other way... The uptick rule, sure there's... You know, Lehman Brothers (LEH) has been at the forefront of saying that the uptick rule shouldn't be available... I think all this has to be relooked at in our bear market... This velocity of which you're now allowed to do things creates a level of fear, you can create a panic... Every hedge fund has the same playbook... If you won't go down there and bang out LEH right now... Now LEH is up today, because the financials were up today... But, you know, it's been known that you can go down there and bang LEH... The hedgefunds are much bigger than LEH... LEH is a little firm... The hedgefunds are gigantic... They can kind of use it as a play thing... So, what I think what people have to recognize is that if you had to wait for a plus tick like the old rule... If you had to go get a borrow, you couldn't do it with ease... I mean, we would've be able to avoid the cataclysmic things that happened in 1929 that are happening now... But, you know, this governement doesn't care...

Now, suddenly they woke up when Fannie and Freddie were about to be destroyed and were suddenly going to have to pay hundreds of billions of dollars, but this stuff has been going on ever since they adopted their laize faire attitude... I have to believe the only guy who's gotten a sepina during this whole year is me... Well, it's very easy... All you got to do is issue a special two-year note, this will probably be over in two years, that's all the mortgages between 2005 and 2007 that's causing the problem... You take that money to fund a mortgage resolution trust, which buys all the bad loans at $.70-.60 on the dollar... I want in on that company, that will make the taxpayer money... We keep the good banks separate from the bad banks and we get through this period... It's two years with a mortgage... It's four million homes, that's all it is... Should that be allowed to destroy the American banking system?... It is, but the government is very laize faire... They fear bail outs... They're fools...

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