Thursday, September 18, 2008

CalPERS Halts Financial Share Lending

Looks like CalPERS is responding to political pressure in an attempt to prop up the share prices of Goldman Sachs and Morgan Stanley. The "volatility" statement is obviously BS; they could simply charge more for the loan of shares if they were worried about getting paid back. We're looking at pure desperation now.

This thing could get a lot crazier.

Pension funds halt lending of Morgan Stanley, Goldman shares
By Wallace Witkowski
Last update: 2:09 p.m. EDT Sept. 18, 2008

SAN FRANCSICO (MarketWatch) -- Pension fund managers Calpers (sic) and Calstrs (sic) said thursday that it has temporarily halting lending of Morgan Stanley and Goldman Sachs Group Inc. shares. A Calpers spokeswoman said that its securities lending program remains "very active," and that the temporary halt stems from the huge volatility in Morgan Stanley and Goldman Sachs shares. Once market volatility abates, the shares will be lent again, the spokeswoman said.

5 comments :

Patient Renter said...
This comment has been removed by the author.
Anonymous said...

Max, how does it feel to be on the sidelines right now?

Darth Toll said...

"Max, how does it feel to be on the sidelines right now?"

dow ends week DOWN .3% so probably Max feels fine! Except that the government has just sold the nation down the river and the entire economy will now proceed directly into the dustbin.

But who cares about that? Oh yeah, now there will be a straight up market crash by October with no shorts covering any more. Heckuva job Paulie!

Anonymous said...

"dow ends week DOWN .3% so probably Max feels fine!"

dow is UP 188 points since Max's post about his 401k.

Patient Renter said...

dow is UP 188 points since Max's post about his 401k.

Yes, thanks to massive historic government intervention the DOW is not below 10k where it would have been otherwise. Yay, we're saved!