Wednesday, October 01, 2008

I've Got Those Bailout Blues :-(

The U.S. Senate passed the revised bailout bill, laden with pork projects and special interest payoffs. Asian markets were nonplussed nonetheless.

But even if the package is approved, investors are skeptical about the bailout's ultimate impact on a faltering global economy, analysts said.

Investors are skeptical? No kidding? Really? I'm not playing this, no way, no how. Every time I try to do the sensible thing and make some money in a bear market, the referees change the rules. Even if I wanted to act, the SEC continues to restrict the tools I may use. Keep those shorts off:

Federal regulators on Wednesday extended an unprecedented ban against all short-selling in the shares of more than 800 financial companies, keeping it in place at least until after Congress enacts a massive financial bailout plan.

The SEC will end the short ban on Oct. 17, anticipating the bailout to be law by Oct. 14. The bear trap is set, and the Plunge Protection Team is ready to spend serious money to spring it.