Normally, I would say the market would bottom about 6 months ahead of the housing market (which even with the current plans would be 2011-2012), but with the gov't willing to buy the crap at 70% on the dollar and an election, these are hardly normal times. I don't think they will be able to halt short selling for long however, since its essential for liquidity in normal markest. And what about ETF's that let you play the downside risk without shorting?

Bob

>One thing seems to be certain: when housing recovers it will be late to jump back.
>
>>At least put the uptick rule back in place. If they can get a handle on the short selling and get an RTC type thing going, I would be inclined to jump back in the market even before the housing recovers, but we need to end the daily drama.
>>
>>Bob
>>
>>>I wonder if Clinton and Schumer really expected that their call to ban short-selling will be adopted. It may unleash market rally of giant proportions.
>>>
>>>>Interesting also that a temporary ban has been put on shorting bank stocks. Normally there would be great gnashing of teeth over interference with the free market (and there probably is). But I guess it's clear at this point that we don't have a free market. They simply don't work without oversight and occasional intervention.
>>>>
>>>>Seemingly daily interventions, now that's a little scary. I wasn't around in the 1930s so haven't seen anything like this before in the U.S.
>>>>
>>>>>Well it looks like they have so many problems now; they can no longer wait to do it over the weekend only, almost 24/7 now. I am now hearing Hank, Ben, and several committees in congress are looking to do a RTC type bailout. Although it will be expensive, it is the right move to make if we ever want to put this behind us.
>>>>>
>>>>>Bob
>>>>>
>>>>>>>>Another one bites the dust
>>>>>>>>http://english.aljazeera.net/business/2008/09/200891551219215862.html
>>>>>>>
>>>>>>>
>>>>>>>Did you miss the whole threads on that days ago? They filed on Sunday.
>>>>>>
>>>>>>Now the question remains, who goes down this weekend? There's a lot more to do, and so little times. Every week has only one weekend, and we all know the least painful way to cut a cat's tail: a centimeter a day... i.e. they have to do this, whatever they're doing, bit by bit. Now, which domino falls next weekend? Virtual betting remains open next 24 hours.