I'm disappointed and really saddened at recent events. The socializing of America is transforming our markets into a predictable situation where ill-gotten profits will be easily taken due to some regulatory body or legislation. The end of free markets, the start of rigged markets. There are some things that make you scratch your head and wonder.

How About a Lifeline to the Oil Traders

With oil dropping from the nosebleed heights of $147 to just under $100 in a few short months, where was Congress with their banned shortselling rules for oil traders? Is it the 'pick and choose' markets they want to manipulate? I suppose some long oil traders really felt some pain since early July, yet no protections were put in place to protect their downside.

At Some Point, Value Should Win Out

Where did the buyers go on Thursday? I'm not talking after the bailout was announced, I'm talking about when Morgan Stanley plunged 60% and Goldman Sachs dropped 40% in a couple of hours. If they loved them at the open, they surely loved them at these prices, right? Was it a raid on the banks? Fear was present, with the VIX reaching multiyear highs. However, prices on these and other names had not been seen in years, perhaps decades. Were they going out of business? Hardly so. Value becomes too good to pass up, even in a panic. I suppose some scooped up shares at these fear moments and are sitting pretty today.

Timliness Is Everything, and the Fed Times it Right...For the Moment

Like Mighty Mouse, the Feds come in to save the markets right when the moment seems most dire. Is it no coincidence that time and again the Fed comes out with a plan or measures to support falling prices?

Last week, was the market on verge of collapse? Perhaps it was. But this sweeping and expensive moves gets done right at the moment the market were about to fall off a cliff, creating panic and widespread fear among market players. As stated above, a VIX higher than 30 tells us players are paying up for protection. The bailout plan was cause for some relief, though along with the banned shortselling rules, and fueled the markets to rally hard. But it really smells bad here, and the timing is curious, but seems to be effective. Getting things done is Washington is a monumental task, but when the gun is pointed squarely at it there is a big election around the corner, then it is more than likely a big solution is at hand. I call it "just-in-time" politics, get it done right before a catastrophe occurs. Very effective when the voters are watching closely

Short Sellers Are Not the Problem

Shorts provide a great service to markets. Everyone knows it, but who better to make the scapegoat for bad decisions and poor performance? The balance and liquidity are needed to have free markets, but now the government tells us we can't take the other side of a long trade. Until this nonsense is sorted out, the rigged market phenomenon will continue to persist. No wonder fear levels are elevated and sustained, who can get a foothold? How many times will a policy decision be made to preserve market prices? Sadly, this may play out in a sheer panic.

Price Headley is the founder and chief analyst of BigTrends.com.