In my previous article (before the trading ends) I wrote that even if the Dow were to rebound 400-points investors were not ready to show their hands. Guess what, the Dow did precisely that and rebound about 400-points. I think I should bet some dollars on 4D or 3D for that matter. It was a coincidence really and the fact that the U.S. Congress promised quick action in support of Bush administration to rescue banks from bad debts helped to push Dow above 11,000-level once again, at least for now.
Treasury Secretary Henry Paulson, Fed Chairman Ben Bernanke and other officials planned to work through the weekend on a comprehensive plan to take away bad assets and debts off the books of struggling financial institutions. Since the plan requires Congress approval, it will most likely involves empowering the government to buy over bank assets, something similar to the 79.9 percent stake acquisition of American International Group Inc.’s (NYSE: AIG, stock) but on a larger scale. Despite flooded the street with $180 billion by Feds, banks remained cautious and reluctant to lend money. U.S. regulators, SEC, also tightened rules on short-selling with a temporary emergency ban on all short-selling – naked or non-naked. However such action hasn’t been publicly announced yet.
This is absurd and if the SEC really wishes to implement such ban, it should only restrict it to “naked” short-selling only. I disagree with “naked” short-selling myself and if you’ve read my previous article on How to Write Check to Yourself Every Month?, I’ve warned against getting yourself naked *grin*. Nevertheless the news of short-selling ban ultimately helped the huge jump in Dow Jones. British regulators, citing “current extreme circumstances” has slapped the temporary ban on short-selling Thursday. Meanwhile New York state attorney general announced a probe into illegal short-selling practices that may have hurt finance firms including Lehman Brothers and Morgan Stanley. Attorneys general from Texas and Connecticut are also doing the same (cracking the short-sellers). But short-selling is just the small part which contributed to the Dow’s bleeding. No doubt they’re the opportunists who made great money during such trying time but they’re definitely not the root of the problems of the global economy meltdown.
Talk about naked short-sellers and chances are you cannot help but to read about “Emperor was without clothes” written all over the blogosphere. The emperor was associated with the current PM Abdullah Badawi obviously. Well, the PM has been walking naked for too long until yesterday’s UMNO supreme council meeting. Apparently some warlords demanded Abdullah Badawi to step down by Oct 9 or risk the embarrassment of not getting the minimum nominations for the president post. Some naughty insiders even went the extra miles and said the PM was seen weeping after bombardment of lectures thrown at him until his deputy, Najib came to his rescue. I bet Najib was enjoying the sight of his boss being screwed left, right and center.
The latest breaking news was that Seputeh MP (Member of Parliament) and senior Selangor state executive councillor Teresa Kok was released from detention under the draconian ISA (Internal Securtity Act) at about 1pm today after one week (of tortured?) behind the dark room, thanks to an article in Utusan Malaysia quoting former Selangor Mentri Besar (Chief Minister) Khir Toyo who made a baseless accusation that Teresa was petitioning a mosque to reduce the volume for azan (the call to prayer) – an accusation which was denied even by the Kinrara mosque committee chairman and Kota Raja MP Dr Siti Mariah. However I doubt the authorities will let RPK out anytime soon especially after he has aimed and let off many cannon balls at deputy PM, Najib. Surprisingly former premier Mahathir who got so fond of this toy called ISA commented that there is no justification for arrest of the bloggers.
Other Articles That May Interest You …
- Nightmare on Dow Street & the shadow of Deep Depression
- Crackdown on bloggers’ websites? Stop the Stupidity
- Many happy faces but Dow is still below 12,000 level