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Comments

Marek

The SEC needs to reinstate the uptick rule that has worked for 70 years. Period.

Many in the media do not understand how the markets work. As a result, they bash this $700 billion package, but it is absolutely necessary.

The reason Paulson has asked for such unprecedented power is to have a $700 billion bazooka against the short sellers.

Hedge funds (like Scion Capital LLC and Paulson & Co.) have shorted billions and billion of securities backed by subprime home loans mortgage paper. If they know that Paulson has unlimited powers, they will rush to cover (otherwise they will not blink).

In short, Paulson and Bernanke want to engineer the largest in history mortgage related paper short squeeze; hence, they need this $700 billion bazooka.

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