SEC finally wakes up and does something — too late

U.S. authorities spent $900 billion to prop up the financial system and housing market. Authorities may get much of that money back if asset prices do not slide further. The SEC finally woke up and stopped short selling of 799 stocks. I guess the original list of 19 was too shortsighted. The SEC wake-up call came one day after John McCain said he would fire the head of the SEC.

The U.S. government was looking to raise $40 billion to boost the Fed’s firepower as a major U.S. money market fund “broke the buck,” or fell below $1.00 a share — a rare event that has the potential to panic retail investors. “When the $1.00 value of money funds is questioned, that’s as scary as it gets,” said David Reilly, director of portfolio strategies at Rydex Investments in Rockville, Maryland.