CNBC is giving me a headache covering today's hearing.
Naked short selling - shorting a stock without first borrowing the shares - is illegal. If it weren't, short sellers with deep pockets could knock any stock down to zero.
SEC Chairman Cox today said that it is now illegal to naked short primary dealers and GSE's (Fannie and Freddie). That was already illegal.
Then he said that the entire SEC hadn't yet ratified the decision, which is like saying that Congress thinks that murder may be illegal but they are going to vote on it tomorrow.
Erin Burnett doesn't get it or smells a rat but isn't getting anywhere.
The Senators' questions, for what it's worth, seem a little less self-interested for a change.
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