Do not yell “FIRE”! It is not that bad!

September 20, 2008 at 12:43 pm | Posted in economics | 1 Comment
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So the SEC banned short selling in financials, and the markets took off. Is that good? What is the signal the SEC is sending us? I think the signal is that things are not as bad as they seem. The SEC is trying to prevent people from yelling “FIRE” in a crowded cinema hall full of smoke. Maybe the fire is relatively minor, and an orderly evacuation is better than a rush for the doors.

I don’t know if things are better than appearances – I remain bearish, but now the SEC will make it all play out in slow motion, so it may take longer before I know if my continuing fears are justified.


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  1. […] know this. I think the SEC is saying that things are not as bad as they seem (as I said previously here), but then, is that what the SEC really believes, or is this just empty […]

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