Weekend Wrap: Naked Shorts, Emerging Markets and Podolsky

Did Naked Short selling bring down Lehman?  Bloomberg ran a long story earlier this week.  Market information from last year suggested that the utilisation of available stock to borrow never really exceeded 60%.  While that is certainly an extremely high number, other companies are often above that and survive.  Sears Holdings is above 80%.  Sears has long claimed abusive short selling yet remains in business.  What do you think?  Be sure to vote in the following survey:

I have always had a particular personal interest in emerging markets.  Check out this article showing a colourful chart produced by Lazard Asset Management and displayed at Seeking Alpha.  The best performing emerging market in the MSCI Emerging Market index?  Morocco – it was only down 11.08% last year.  That’s right, the best performing market lost over a tenth of its value.

Earlier this week I ran into Richard Greensted, a veteran commentator on the securities services industry.  It gave me the opportunity to talk to him about The Podolosky Diaries.   Richard describes it in the following way:  “A cautionary tale for our times: The fictional account of one hedge fund manager's decline and fall from grace”.  As I read it, I often find myself thinking: “I’ve been in that meeting” or “I’ve met that idiot”.  A darkly amusing diary that I highly recommend you read.