Wonk Watch
We read the smarties so you don't have to.
Brad DeLong
Took the day off.
Paul Krugman
Took the day off.
Barry Ritholtz
Nothing of especial wonkiness but did link to this above-average what-caused-the-collapse chart that made it into his book.
Felix Salmon
Thanks to all these light-blogging days from the others, Wonk Watch is quickly becoming Salmon Seer. When he wasn't busy reacting to a TBM story on RSS feeds, he was calling for the end of the SEC, offering a mea culpa on a derivative oversight, and trying to sort out how a "pre-borrow" differs from a naked short sell (commonly defined as borrowing stock you don't have to sell it, hoping to make money if it falls in price). We'll let Salmon dewonkify:
On the day that you short a stock, you don't need to borrow it, you just need to locate it. That means looking it up on an "easy to borrow" list, or phoning up a dealer and asking for a locate. Once you've got a locate, you can then go ahead and put in your sell order, even if you haven't actually borrowed the stock. In fact you don't actually borrow the stock until three days later, when the trade settles.
So a pre-borrow is more inclusive than a naked short. Therefore, if the SEC were to ban it, it would cause more far-reaching effects than the already-imposed limits on just naked shorts. More info at the Wall Street Journal for the masochists among us.
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