This blog post originally appeared on RealMoney Silver on Sept. 19 at 7:19 a.m. EDT.
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
. (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.
Doug Kass writes daily for
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Doug Kass is founder and president of Seabreeze Partners Management, Inc., and the general partner and investment manager of Seabreeze Partners Short LP and Seabreeze Partners Short Offshore Fund, Ltd.