Today’s news that SEC Chair Chris Cox is trying to create a kinder stock market by announcing a rule that already exists — you must pre-borrow stock before you can short it — reminded me of something straight out of Dr. Strangelove. In particular, it put me in mind of one of my favorite scenes: "Gentlemen, you can’t fight in here! This is the War Room!"
As an aside, I think the SEC should always announce new rules that are actually existing ones. It’s simpler and much less trouble than bringing out new real rules.