walkitout (walkitout) wrote,
walkitout
walkitout

it's not NYT; it's Floyd Norris; and hey! check out the dirt on auction rates

The author of the inexperienced-people-produce-bubbles column is generally sensible. He wrote this a few weeks about about Finra saying there's no rule stopping a broker from selling something that the client wants sold, even if the price is lower than the broker thinks it should be. Say what?

http://www.nytimes.com/2008/06/20/business/20norris.html

Okay. That's weird. Let's dig a bit further. Over here at Bloomberg, are some of those "anecdotes" that Norris mentions. They're pretty detailed. And pretty horrifying.

http://www.bloomberg.com/apps/news?pid=20601213&sid=aWaReGVrnTHk&refer=home

People who have auction rates, have _actually found a buyer_ and their broker won't execute. UBS. Wachovia. Bank of America.

Okay, we don't like Bank of America. Wachovia is Unspeakably Evil. And that latest lawsuit pretty much nails our opinion of UBS down. Thoroughly. But still. It's not like these are fly-by-nighters.

It's an ugly world out there.
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