MORNING YAPS

*China, Japan and emerging markets have had a great run up, now they will need a NORMAL sell-off. Bet you weenies will blame this on short sellers too. Asian markets decline, with Shanghai Composite plunging
China's Shanghai Composite plummeted nearly 8% before recovering a bit to end down 5%, while most other Asian markets also dropped Wednesday. Japan's Nikkei 225 gained 0.3%, South Korea's Kospi Composite inched down 0.1% and Hong Kong's Hang Seng Index fell 2.5%. Markets in Australia, India and Taiwan also suffered losses. Google/The Associated Press (29 Jul.)

*Banks are digging their heels in even further on this, especially since Wells Fargo is now an investment bank and since the recession is over. Yeah right!
White House presses banks on mortgage modifications
The U.S. government's efforts to curb foreclosures has gotten off to a rocky start, prompting a meeting between senior officials from the Obama administration and executives from the largest banks in the nation. The Treasury is encouraging bankers to ramp up its efforts to modify mortgages and help struggling homeowners. Making Home Affordable, the government program launched in March, has helped about 200,000 homeowners modify their loans. The Treasury wants 500,000 mortgage modifications by Nov. 1. The Washington Post (29 Jul.)

*I think Helicopter Ben is just as much to blame as Greenspan, but imagine CONGRESS having the ability to set monetray policy? Even with a gold standard they would spend spend spend and have interest rates stay at .25% forever. Ijiots.
Bernanke struggles to keep Fed independent
Federal Reserve Chairman Ben Bernanke is striving to maintain the central bank's independence, but legislation that has garnered much support in the U.S. House would require the Government Accountability Office to audit the Fed's activity. Bernanke said such audits would not be "consistent with independence." "I don't think the American people want Congress running monetary policy," Bernanke said at a recent town hall meeting in Kansas City, Mo. Bloomberg (29 Jul.)

*you should all thank your lucky stars for Short Sellers. They expose the trash behind the banks and companies that rig their numbers. And guess who does the most Short Selling? Goldman Sachs! Try telling the gov that they can't do it.
Critics say SEC needs to adopt stricter short-selling rules
Critics say the Securities and Exchange Commission's efforts to address abuses related to short selling may help expose the problem, but won't get to the root of it. Some observers say the SEC needs to adopt a tough pre-borrowing requirement to curb naked short-selling. The SEC is scheduled to discuss pre-borrowing at a round table in September. InvestmentNews (7/28)