Saving Grace Or Scarlet Letter?

Walk around Wall Street and you can’t help but notice traders are a little peeved. Not only don’t they like the recent mandate against short-selling, many feel it’s actually hurting the market.

“I think the short-selling ban has more potential to hurt the financials then help them,” says trader Jim Iuorio on Fast Money. “It’s kind of like a Mom telling a neighborhood bully not to pick on her son. They’re not going to have a lot of good luck with that."

"And the big hedge funds could throw up their hands and say I don’t want to play and liquidate their positions. There are already plenty of good reasons to sell financials .”

Some traders might do more than express their frustration on Fast Money. According to the New York Post they might sue. The Post writes, “some people say action could come from Phil Goldstein of Bulldog Investors, a hedge fund manager who successfully challenged the SEC several years ago…”

Iurio thinks it all comes down to how quickly the Congress passes the bailout. And he’s watching the clock. “I’m worried that the lawmakers will bicker about the details to the tune of a 10% move to the downside.”

I think we’re at an extraordinary juncture in American history, adds Dylan Ratigan. The only reason $1 trillion in taxpayer money would be put at risk is because we have no alternative but to do so.

What do you think? Tell us now.

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Trader disclosure: On Sept 23, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE): Najarian Owns (AAPL) And (AAPL) Collar:Najarian Owns (BBBY) Put Spread:Najarian Owns (MS), Is Long (MS) Puts, Is Short (MS) Calls:Najarian Owns (WB) Put Spread:Najarian Owns (XLF) Call Spread: Finerman Owns (GS); Finerman's Firm Owns (JNJ), (MSFT), (SUN), (TSO), (VLO); Finerman's Firm And Finerman Own (WM); Finerman's Firm Is Short (IYR), (IJR), (SPY), (IWM), (MDY), (COF), (BBT); GE Is The Parent Company Of CNBC

Iuorio Owns (C); Iuorio Is Short S&P 500 Index Call Options with wires