This is pathetic to watch, but we must be on guard because our rights are being taken from us. Make no mistake about that. I received the following letter tonight from someone who follows this stuff much closer than I. I hope you read this material and participate in the dialogue.

Bill, This is near surreal. In 2004 Dateline NBC was filming an expose called “Financial Terrorism in the USA”. It outlined naked shorting, offshore accounts and money laundering for organized crime and terrorists. They scraped the story after market members and DTCC threatened them. Today Jim Cramer came out and discussed his conversations with various short sided hedge funds. They all claimed they were not shorting the financials. They called it a stupid move with all the attention focused on them. Jim identified that the shorts taking place were engaged in financial terrorism by people who wanted to take down the US markets. I had a similar call and discussion earlier today. An individual close to all these big funds stated near identical story. The big funds are on lockdown. They said that with all the attention they did not want to risk jail for this stuff. They are also pissed because these moves being made will actually hurt them. I have also been informed that some of these big funds have contacted the 9/11 Commission/Homeland Security to discuss the possibilities since these guys are not involved. I am at a loss as to what to say…but now you know what I know. It would also explain this sudden next step.

Leadership in America seems to have disappeared, replaced by paranoia as well as real concerns. Tonight I had a reasonable request about the new short selling rules. I am certain many others are also in a dizzy state over all this. As for our concerns, maybe we can work on this together.

Bill, Would you please address this below in your morning comment section? I am currently invested [heavily] in ultra shorts [QID & TWM]. Does this mean they go to zero? I must admit after all that has happened with the bailouts and this crazy rally and now the possible banning of short selling, I am extremely worried.

"The U.S. Securities and Exchange Commission intends to temporarily ban short-selling, The Wall Street Journal reported Thursday night. It's unclear if the commission has approved the move, the Journal reported. SEC Chairman Christopher Cox, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson were briefing congressional leaders Thursday night. The U.S. move would follow a similar action by U.K. regulators on Thursday."

Yes, the SEC will most likely place a temporary ban on the financial markets. Traders need to voice their concerns and to have the SEC explain to you how the investing public will not be harmed by such a move.

Based on their news release today, getting a straight answer out of the SEC is likely near impossible. However, I would urge investors to contact the SEC office tomorrow morning (202) 551-4120, ask for John Heine, and ask for an explanation as to what impact this will have on these positions. John will not likely have the answers, but it’s his job to run it up the flag pole.

Another contact number is:

Office of Investor Education and Advocacy
Kristin J. Kaepplein, Director
(202) 551-6500

Based on my single personal experience in an SEC conference call with Ms. Kaepplein, I believe you will find her views and mine at odds. In our discussion she took the position of the media over the people she is in place to educate and advocate for. However, maybe I’ll be pleasantly surprised.

Americans in this community do need to call John and Kristin and report back.

It’s late. Tomorrow is Quadruple Witching. I think the horror show started a day or two early.

ADDENDUM

The article that had been posted here earlier was sent to me by a legitimate source. I checked it out on two websites, but could not find it at the Wall Street Journal where it was purported to be originally published. So I pulled it. Possibly it was a fake, and possibly the WSJ pulled it.

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