Friday, August 17, 2007

Uptick Rule, Round 3: The Fed Wakes Up

We're pleased to see that the Fed has finally gotten round to cutting the rate it charges at the discount window by a full half percentage point. Market rallied considerably this morning, but the usual activity of the past 3 weeks resumed. Namely, that, on any rise, sellers moved right in, blunting the rise. It's going to be that way for awhile, HazZzMat thinks, as there are still a lot of hedge funds and other entities that need to raise cash to atone for their sins of commission.

Uptick rule is still off the table however, so the volatility on the downside is going to be a given. We suspect the market will take a breather here before it gets back to its downward trajectory. But at least much of the violence, initiated by the subprime-liquidity crisis and abetted by the missing uptick rule, should begin to abate.

We now return you to our regularly scheduled rants against America's closet leftists and their close friends, the international jihadists, a few of whom are now running a taxpayer-supported public school in New York City. Wonder where the ACLU is. (Probably off pulling the Ten Commandments out of some courthouse somewhere.) These clowns and their minions have been destroying America and American traditions far more efficiently than out-of-control hedge funds ever could.

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