Margin Clerks Working Overtime Today

The bears are having a tough time finishing off this market, but might get help later this afternoon. President Bush's speech at 2pm might not kill the bulls, but margin clerks liquidating securities this afternoon could.

Is anyone noting that the banks are trading the same securities as many of the clients they are forcing into the woodshed? The thievery is approaching what happened to LTCM; and the lawsuits will begin to start flying. Some money managers are speculating that the shell of Thornburg Mortgage (TMA-NYSE) might have some value later due to litigation rights. Time will tell, but the hedgies are starting to scream bloody murder.

Stocks are putting up a better fight than most people expected, but the day ain't over yet. Homebuilders are back to levels that merit consideration, at least to cover shorts put out at the end of January.

If you are looking for a sign of the times just turn out the television; recent titans of Wall Street are being interrogated in front of the entire country as the hunt for scapegoats intensifies. With the exception of Mozilo, all of those guys have something in common today. 52-week lows in the stocks of companies they used to lead.

Dennis Kneale seems to have some sympathy for Stan O'Neal, but that sentiment is not likely to be shared.

Strap yourself in for a frenetic afternoon.

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