Imagine what a bigger mess we would be in if Martha Stewart didn’t go to jail and learn her lesson.  The SEC has banned short selling in 799 financially related stocks.  Many short sellers have been adding to the meltdown.  This ban will last through the beginning of October and can be extended.

Treasury Secretary Paulson announced that the US government will guarantee money market funds.  Yesterday, there was a “bank run” as 180 Billion dollars was taken out of money market funds due to a lack of consumer confidence.

The Fed has decided to create a market place for non-liquid mortgage debt.  The mortgage meltdown has decimated many companies and at present there aren’t buyers for this  type of debt. 

And the Resolution Trust Company (RTC) will be revived.