Great post Slaveman
I will add
1. The list of banks now prohibited for shorting is selective. Check the list and compare with holdings in them by Goldman Sachs.
2. Paulson previously employed by Goodman Sachs
3. FED is a private organisation controlled by 12 banks in the US. Should be of no suprise that all the FED moves are to protect those twelve banks. Unlike Australia there is no independence.
4.Indymac and Wachovia are not included in the twelve banks and therefore are not on the short prohibition list
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