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Kass: Free Market Fraudsters

Doug Kass

The SEC has instituted a temporary ban on short sales in a wide array of financial stocks.

As a dedicated short, I never thought an outside influence like the SEC would damage my portfolios and my business; I always thought my miscues and poor judgment would.

I was mistaken.

Turns out, the SEC, Treasury and their peers at home and abroad just don't like short people.

Not surprisingly, many free market capitalists are cheerleading the SEC's decision. From my perch, they are frauds.

The decision will likely prove myopic. (While the RTC-like package is complicated, at least, it appears to be a step in the right direction.)

Among other things, the SEC should have regulated credit default swap (CDS) trading and disclosures. The CDS market is subject and continues to be subject to all sorts of insider conflicts and potential abuses, and its influence over the financial system is far greater today than the equity markets.

Wall Street needed a scapegoat -- and found one in short sellers.

Blame the blamers.

Do you agree with the SEC's decision to ban short-selling on financial stocks?
	Yes No Why didn't they do it sooner?

Doug Kass writes daily for RealMoney Silver, a premium bundle service from TheStreet.com. For a free trial to RealMoney Silver and exclusive access to Mr. Kass' daily trading diary, please click here.