Socialism for Freddie and Fannie

This is serious, very serious.

Today from WSJ:

SEC Curbs Shorting of GSE Stocks, Considers Limits for Wider Market
By Kara Scannell
Word Count: 348 Companies Featured in This Article: Fannie Mae, Freddie Mac, Lehman Brothers, Goldman Sachs, Merrill Lynch, Morgan Stanley
WASHINGTON--The Securities and Exchange Commission announced an emergency action aimed at reducing short-selling that targets Wall Street brokerage firms as well as Fannie Mae and Freddie Mac, and will immediately begin considering new rules to extend new requirements to the rest of the market.

SEC Chairman Christopher Cox said the SEC would institute an emergency order requiring any traders to pre-borrow stock before shorting Fannie Mae and Freddie Mac, the ...

http://online.wsj.com/article/SB121614248005255151.html?mod=djemalertN

WTF ?!?!

So you can short IBM or MFN or NVDA, but you can not short Fredie Krueger.

This really is socialism. I don't think short selling is bad. For every short there is a long, even if is naked-short.

Financials sucks. People are scared of stock exchange too. Prices will go down. They must.

Speaking of naked-shorts, I really hope somebody to naked-short those financials, so finally SEC pay attention on this problem.

---

Update:
Same from Mish:
http://globaleconomicanalysis.blogspot.com/2008/07/sec-panic-shorting-curbs-placed-on-gse.html

WSJ Article full text:
http://blogs.wsj.com/deals/2008/07/15/the-fed-limited-short-selling-fannie-freddie-and-lehman-will-it-work/?mod=yahoo_hs

Update:
Same from Jesse Cafe American:
http://jessescrossroadscafe.blogspot.com/2008/07/sec-issues-emergency-rule-on-short.html