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Italy May Enforce Naked Short Selling Ban As Early As Tonight To Prevent Market Rout

Tyler Durden's picture




 

Once again the great diversionary scapegoating of speculators begins, after as Il Sole 24 Ora reported that the Consob, or Italy's regulator, may enact a naked short selling ban as early as tonight. The premise is that it is the shorters who are responsible for the ruinous state of the global ponzi. Not the fact that it is a, well, global ponzi. Distraction 101. And yes, it did not work back in 2010 when banning naked shorting was implemented in other European countries, it will not work this time either. But it won't stop bankrupt governments from trying. To wit: "Commissioners will assess the situation before markets open Monday, said a Consob spokesman, who declined to be named in line with the regulator's policy. Commissioners may decide to restrict "naked" short-selling in line with similar decisions taken in other European countries, he said.... The Consob meeting occurs after shares of Italy’s biggest
banks fell to the lowest in more than two years on July 8, and
government bonds dropped, driving 10-year yields to a nine-year
high." 24 Ore adds: "Consob intervened several times in the past on short selling after the collapse of Lehman Brothers to protect stock markets."

More from 24 Ore:

Meanwhile on Sunday afternoon, Lamberto Cardia, Consob, who led Consob from 2003 to 2010, had more to say. For Cardia short selling "in the presence of a serious crisis should be totally prohibited for the period required." For the former chairman of Consob, the day after the crash of Lehman Brothers Bank restricts short-selling within three days, "it is preferable to a reduction in short-term market movements rather than attend to the serious damage that will result in load of listed companies, also strategic for the country. "

And to think there was a time when the stock market could drop without resulting in strategic consequences for the host country...

As noted, this is not the first time this approach has been taken:

On July 5, European lawmakers voted in favor of a ban on short selling of government bonds in the EU unless traders have at least “located and reserved” in advance the securities they intend to sell. The European Union Parliament in Strasbourg, France, also called for restrictions on traders’ use of credit- default swaps to profit from defaults on sovereign debt they don’t own.

The European Securities and Markets Authority, which co- ordinates the work of national regulators in the 27-nation EU, should be given emergency powers to temporarily ban short selling or trades in CDS on sovereign debt in the EU, the Parliament said.

Politicians including German Chancellor Angela Merkel and French President Nicolas Sarkozy have claimed that naked short- selling and credit-default swaps worsened the euro area’s sovereign-debt crisis, and have called for EU curbs.

Michel Barnier, the EU’s financial-services chief, said last year such trades may lead to “disorderly markets and systemic risks.” Finance ministers from the 27-nation region agreed in May that traders should be allowed to short sell government bonds and stocks if they have a “reasonable expectation” that they can obtain the underlying securities. They also rejected calls from Germany for a ban on sovereign CDS.

Alas, this is nothing more than an attempt to indicate that Consob has control over the situation when it has none. As a reminder the US instituted a ban on all short sales in financials, only to see longs dump all their holdings and lead to the biggest plunge in the market in the aftermath of the Lehman collapse.

Thus, in attempting to mitigate the crisis in the aftermath of "Black Friday", Italian authorities may have just made the bears' job that much easier.

h/t G.C.

 

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Sun, 07/10/2011 - 15:27 | 1441696 TruthInSunshine
TruthInSunshine's picture

It's all good, Brosephs:

 

Italy, Shcmitally.

Debt, Schmet.

Default, Schmefault.

PIIGS, SchPIIGS.

 

Sun, 07/10/2011 - 16:45 | 1441854 max2205
max2205's picture

Naked shorting should be banned everywhere......all the time

Sun, 07/10/2011 - 17:04 | 1441896 Gunther
Gunther's picture

+1

Sun, 07/10/2011 - 17:13 | 1441913 HungrySeagull
HungrySeagull's picture

Italy's Regulators fight the nuts.

http://www.youtube.com/watch?v=e1tdfucQfCo

 

 

Mon, 07/11/2011 - 00:24 | 1442656 el Gallinazo
el Gallinazo's picture

Totally agree. As Max Keiser says, it's just another type of counterfeiting.

Mon, 07/11/2011 - 01:02 | 1442708 Idiocracy
Idiocracy's picture

+100.  Amen!  It is counterfeiting and theft, pure and simple.  The opposite of free market capitalism.  

To 'defenders' of NSS: How would you like it if you built a company and some jackasses could just will its shares into existence and sell them at any time?  Why does the SEC even bother with all the stringent share registration requirements if they allow this to persist? The fact that the SEC winks at it proves they are the pathetic lap poodles of the elite broker lords.  

 

Regular short selling is fine and healthy for markets.

Sun, 07/10/2011 - 15:21 | 1441697 SilverIsKing
SilverIsKing's picture

You can't sell Consob short.  They are a very creative bunch.

Git yer gold while supplies last!!!

Sun, 07/10/2011 - 15:33 | 1441729 DoChenRollingBearing
DoChenRollingBearing's picture

Italy may be the first BIG example of what´s coming...

Just a few more weeks to get gold please!  Just a few!  I promise, and then I will have enough!

Water filter and food too.  Maybe another 300 rounds of ammo for each...

Sun, 07/10/2011 - 15:52 | 1441762 HungrySeagull
HungrySeagull's picture

+1

My soul mate!

Not really lolz.

Good luck!

Sun, 07/10/2011 - 16:12 | 1441792 TheTmfreak
TheTmfreak's picture

Shit is happening too fast for me and I can't make any purchases! I want da gold. Gimmie da gold.

Sun, 07/10/2011 - 16:13 | 1441793 Sudden Debt
Sudden Debt's picture

And the housing bubble in Italy is also hughe.

500K for a rowhouse is quite normal in Rome these days. The older the more expensive is their crede. It's just nuts. And rental prices are tiny compaired to the selling prices.

1. Rates are going up so there will be massive foreclosures comming

2. Unemployment is quite high en will get a lot higher.

3. No real efficient industry base.

 

This coctail is toxic!

Sun, 07/10/2011 - 16:26 | 1441816 HungrySeagull
HungrySeagull's picture

Gags....

In US Dollars or Italian money?

 

Maybe those big brass beds that are fuckable for strength might still have value on the firesale market.

Sun, 07/10/2011 - 16:32 | 1441829 Sudden Debt
Sudden Debt's picture

the made in europe kind of funny paper.

 

Sun, 07/10/2011 - 16:24 | 1441811 The_Euro_Sucks
The_Euro_Sucks's picture

Lol, Dochen, even a shrimp like me already knows for almost 2 years that Draghi (ex goldman sucks) made deals for Italy like  Greece. The market (giants) know this way longer. I see no suprises coming exept paper going higher. ECB has the same owners as the FED.

Sun, 07/10/2011 - 16:42 | 1441847 disabledvet
disabledvet's picture

That's what the Fed said. Flag moving time?

Sun, 07/10/2011 - 15:21 | 1441698 Cleanclog
Cleanclog's picture

Shouldn't be called a "market" anymore.  So medicated and manipulated that simple buying and selling, or anticipatory buying and selling is challenged.  

Gonna get even more nuts when US GDP becomes further downestimated with new China export news.    Carry on!  

Sun, 07/10/2011 - 15:27 | 1441713 ziggy59
ziggy59's picture

algos will read- less countries may default than predicted this weekend,. Dow -5th dimension, "up up an away"...more fluoride and chemtrails right away!!

Sun, 07/10/2011 - 15:22 | 1441699 ziggy59
ziggy59's picture

should be named and written for what it is.. Conjob.

Sun, 07/10/2011 - 15:23 | 1441702 buzzsaw99
buzzsaw99's picture

Just ban selling of any kind. Buying only permitted.

Sun, 07/10/2011 - 15:47 | 1441752 three chord sloth
three chord sloth's picture

Don't be silly... we can't ban all selling. What about the insiders and the VIPs? We must allow them to cash out -- at inflated prices, of course -- or the world will end!!1!1! After all, why do you think they're pumping up stocks everyday... the wealth effect? The good of the pension funds?

Sun, 07/10/2011 - 15:48 | 1441755 JJSF
JJSF's picture

That's what the comex did when silver prices became too high in 1980. Banned all buying..only selling allowed. Meanwhile board members of the comex were well stocked on their shorts and did quite well.

Sun, 07/10/2011 - 17:46 | 1441977 SamuelMaverick
SamuelMaverick's picture

I read some articles about the comex scam in 1980, one of the articles included an interview with one of the Hunt brothers where he explained how Comex retroactively changed the margin requirements which pretty much wiped the Hunt brothers and their investment associates out. It blew my mind that Comex could just change the rules in the middle of the game to enable an outcome that they desired. The board of the Comex were in fact loaded up on shorts and made a killing. 

Sun, 07/10/2011 - 18:30 | 1442076 Libertarian777
Libertarian777's picture

IIRC, that article basically indicated the Hunt brothers were not speculating. They were long silver, and were intending to take delivery, until the Comex changed the rules as to how many contracts a person may be long.

That plus the overnight change in the margin requirements, forced them to liquidate.

Sun, 07/10/2011 - 15:58 | 1441775 malikai
malikai's picture

I think you're on to something. Are you an EEA economic consultant?

Sun, 07/10/2011 - 15:24 | 1441703 mt paul
mt paul's picture

if i can't trade naked.... 

might as well put on pants 

and go bugger porcupines ....

Sun, 07/10/2011 - 15:41 | 1441743 Black Forest
Black Forest's picture

+100

Sun, 07/10/2011 - 20:26 | 1442229 hardcleareye
hardcleareye's picture

ahhh.... having pulled my share of quills out of dogs, even with pants that sounds painful...... but then again..... traders have never stuck me as "mentally sound".

Sun, 07/10/2011 - 15:24 | 1441705 smlbizman
smlbizman's picture

should gold have a strong open at 6?

Sun, 07/10/2011 - 15:35 | 1441733 DoChenRollingBearing
DoChenRollingBearing's picture

I´ll be by a little later to take a look at gold´s price as well.

Sun, 07/10/2011 - 15:27 | 1441710 Iam Rich
Iam Rich's picture

Thought naked shorting was...you know...not legal.  It's called counterfeiting.

Sun, 07/10/2011 - 15:30 | 1441720 buzzsaw99
buzzsaw99's picture

the squid has tentacles made of synthetic cdo.

Sun, 07/10/2011 - 15:32 | 1441723 Problem Is
Problem Is's picture

In the real world where Jamie & Lloyd don't write the laws and pay(off) the regulators...

Sun, 07/10/2011 - 15:40 | 1441741 Stares straight...
Stares straight ahead's picture

like printing fiat

Sun, 07/10/2011 - 16:27 | 1441817 uranian
uranian's picture

my first thought, too. lulz at when it's become so commonly accepted to commit crime that it warrants special mention when the relevant financial authority decides to actually prosecute the crime.

and it entertains me that i go away for a week and pay little attention to the latest round of financial impending doomness, and now it's a different country about to go down the crapper. my bets are for the UK next week!

Sun, 07/10/2011 - 15:29 | 1441716 Mr.Kowalski
Mr.Kowalski's picture

Banning short sellers is rather like shouting "Oh sh!t this is bad" from the rooftops. In doing this, they'll actually scare real investors into cash withdrawls and stock dumps.  

Sun, 07/10/2011 - 16:43 | 1441849 FeralSerf
FeralSerf's picture

Short selling should be banned if the short seller can't   beg, borrow or rent (note: I didn't include "steal") some real valid shares to deliver to the buyer.  He also shouldn't get the use of the money he gets from the short sale until he covers.  The non-naked shorter also has a risk of a short squeeze, which may not a problem for the naked short seller with the resources to short the company into oblivion.

Otherwise, I agree completely that short sellers add liquidity and honesty to a free market.

Mon, 07/11/2011 - 03:29 | 1442848 combatsnoopy
combatsnoopy's picture

No kidding.

‎"Finance ministers from the 27-nation region agreed in May that traders should be allowed to short sell government bonds and stocks if they have a “reasonable expectation” that they can obtain the underlying securities. They also rejected calls from Germany for a ban on sovereign CDS."
http://www.bloomberg.com/news/2011-07-10/consob-may-ban-restrict-naked-short-selling-at-meeting-sunday-night.html


---so let's say somebody sells naked bonds to squeeze Italy. Let's see how many UNCOLLATERALIZED collateralized subprimes the subprime dealers sold? $200 Trillions worth-when there was ONLY $86 trillion(?) bonds that exist on the US markets? 

Uhhhh-Did the subprime dealers think that they could collateralize $200 trillion worth of subprimes with only $86 trillions of bonds (IF that?).... 

*NO*. 

$200 TRILLION > $86 TRILLION. By a lot of money.   The difference is $114 Trillion, I'm sure Bernanke's printing press of tax dollar collected Treasury yields and inflation of USD has that in it's back pockets. 

But the subprime dealers did it anyways, against better judgement. Thank you SFAS140 and Repo101. 
It seems like the EU is putting Italy in an unfair position and it's pushing the Euro down on purpose.  The naked short selling reminds me of how Soros shorted the British pound and the Myanmar currency.  At least Soros was straight forward with his intentions, the EUis not.  

Again, What makes the Finance Ministers in Europe think that Wall STreet speculators and others in hidden tax shelters are going to sell naked on reasonable expectation that they can obtain bonds (that might not exist) based on Wall Street's past behavior of selling uncollateralized "collateralized" debt obligations they couldn't cover?

Why is the EU/Finance Ministers/The European Securities and Markets Authority putting Italy in a bad position? The Euro (that they head) is getting dragged down because of this.  To anyone else this is a rather bad judgement call on their part. Hmmmm....are they forcing Italy to take a bailout?

The question is WHY?

Sun, 07/10/2011 - 16:51 | 1441862 DeadFred
DeadFred's picture

1. Find out who exactly decided to make and announce this change.

2. Take a look at their personal investment portfolio.

3. Marvel at the beauty of their leveraged short position.

ZHers should know better than to assume government officials are actually trying to help their countries. The top has been reached, the short squeeze is over, and the algos have been reprogrammed to 'down' mode. They won't get any more free goodies until the panic level is notched up a lot.

Sun, 07/10/2011 - 16:58 | 1441877 disabledvet
disabledvet's picture

and away from their banks. Thanks Mr. ECB! At least when Greenspan did it we had to wait for the inevitible. Here's the Greenspan approach:
http://www.youtube.com/watch?v=vTnj-pkWN18&feature=player_detailpage
versus as posted earlier "The Trichet Way":
http://www.youtube.com/watch?feature=player_detailpage&v=djZFHTa6TfA

six of one half dozen of the other i guess.

Sun, 07/10/2011 - 15:30 | 1441721 DoChenRollingBearing
DoChenRollingBearing's picture

Yeah, well good luck with that Italy.  .govs never learn...

Sun, 07/10/2011 - 15:31 | 1441722 ziggy59
Sun, 07/10/2011 - 15:37 | 1441732 TruthInSunshine
TruthInSunshine's picture

Everything right now has reached the point of Absurdum Maximus.

In other words, this is what it sounds like when PIIGS+UK+US fly.

In a hurricane, even pigs can fly [if for brief period, and with bad outcome].

Sun, 07/10/2011 - 15:53 | 1441765 HungrySeagull
HungrySeagull's picture

A car was auto photographed running a red light 8 feet above the intersection during Katrina. The speed was shown about 134 mph. The vehicle was upside down and planed all wrong.

The tickets went out anyway.

Sun, 07/10/2011 - 16:33 | 1441832 Gordon Freeman
Gordon Freeman's picture

Bzzzzzzz! Wrong answer!  Things are going to get MUCH MORE absurd, mon ami...

Sun, 07/10/2011 - 15:36 | 1441736 buzzsaw99
buzzsaw99's picture

from reuters:

"From tomorrow, we have the job of showing we are united and blocking the effort of speculators," said Paolo Bonaiuti, a government undersecretary and senior aide to Berlusconi...

Sun, 07/10/2011 - 15:45 | 1441747 Stuck on Zero
Stuck on Zero's picture

Italy is taking the wrong approach.  The way to handle naked short sellers is by taking their money.  The way to do that is to take deep government pockets and force the stock to up.  Announce something incredible to drive the price up.  Force a merger if necessary.  Before long you will soon all the naked shorts. A company I know of was getting clobbered by naked shorts and then out of the blue we were purchased by a bigger company for double the open market price.  What a squawk.  Two brokerage houses in Canada and one in the Netherlands came begging for mercy. 

Sun, 07/10/2011 - 15:52 | 1441753 Black Forest
Black Forest's picture

Force a merger if necessary

With Greece, China, Germany or the US? Decide.


Sun, 07/10/2011 - 16:06 | 1441786 Cleanclog
Cleanclog's picture

Perhaps with Tom Cruise and John Travolta via Scientology.  The aliens will take care of the planet Earth playthings!

Sun, 07/10/2011 - 16:09 | 1441790 Urban Redneck
Urban Redneck's picture

 

The Italian "regulatory" approach reeks of bureaucratic impotence.  Press releases before the fact are counter-productive.  And some mid-level bureaucrat in Rome or Milan doesn't have access to deep enough pockets to to scare away TBTF vultures, if they are even employing a simplistic and primarilly short equity strategy.

But it is necessary to beat the bankers at their own game- their lack of fear and consequences has catastrophic global consequences.  And watching a TBTF who thinks "daddy is going to bail him out" skull fucked all the way to the poor house is better bread & circus for the masses than American Idol or whatever inconsequential garbage they are watching on TV now. 

Oh yeah, since "to the victor go the spoils" is the first rule of death/piss match banking- if they do it right, they'll some have some extra dough to either help out the weaker EU hands less able to defend themselves, or pay off a few pennies of that obnoxious debt.

 

Sun, 07/10/2011 - 16:26 | 1441818 equity_momo
equity_momo's picture

You clerarly dont understand markets if you think AOL-Warner type mergers are the answer. Because trust me , anyone buying anyone since 08 is paying a premium that will vapourize. Shorts are an integral part to markets. What do imagine will happen if there were zero shorts in the market on an NFP number like Fri? Selling begets selling. A healthy SI is a healthy market.

Mon, 07/11/2011 - 05:14 | 1442903 Urban Redneck
Urban Redneck's picture

Shorts are an integral part of natural market movements.

This is an orchestrated for profit gang-rape of Italy by big money.

The governments are already incessantly intervening in the markets to maintain the status quo, and the Robber Barons are profiting handsomely by their efforts, so there really isn't a natural short interest or a healthy market at this point in time to be detrimentally impacted by further government intervention.   

Sun, 07/10/2011 - 16:28 | 1441819 HungrySeagull
HungrySeagull's picture

The HUDSUCKER Proxy!!!!

AWESOME!

 

what damage did the Brokerage houses suffer? Did they survive?

Sun, 07/10/2011 - 16:35 | 1441835 equity_momo
equity_momo's picture

Whats the deal with encouraging even more market manipulation?

Who here thinks short sales are "bad"? Next stop , a nice grey uniform , 1 size fits all. The youngsters of you will be down the salt mine though , no need for uniforms down there.

Sun, 07/10/2011 - 17:45 | 1441976 Stuck on Zero
Stuck on Zero's picture

One securities dealer survived.  One lost all the management and paid fines but carried on.  It seems they were operating an insider operation through the Bahamas.  The company that purchased us lost all of its management in the same scam.  Apparently they would naked short companies until they were crumbling, bring in a buyer and tell them what a great deal they had, switch to long when the deal was imminent and then get out when it became public. 

Mon, 07/11/2011 - 03:31 | 1442850 combatsnoopy
combatsnoopy's picture

First Italy stops the naked short selling.  Then they lobby Moodys' for an upgrade. 

Sun, 07/10/2011 - 15:48 | 1441754 Sudden Debt
Sudden Debt's picture

Just by saying they aren't allowed anymore makes sure that everybody will take notice of the fact and even forces the media to focus on Italy making matters worse.

I would have already thought they learned that this way is the bad way to cover things up.

 

Sun, 07/10/2011 - 15:49 | 1441756 johngaltfla
johngaltfla's picture

That worked great for Greece and Ireland (not).

Sun, 07/10/2011 - 15:51 | 1441760 mick_richfield
mick_richfield's picture

No naked short-selling ?!?!

You know it's serious when they start enforcing rules against felony fraud in the stock markets.

Sun, 07/10/2011 - 15:52 | 1441761 carbonmutant
carbonmutant's picture

I think enforcing the Naked Short Selling ban is a good idea...

But I have no idea on how they can enforce this since there are plenty of money hungry EU banks that are eager to take the short side of this trade.

Sun, 07/10/2011 - 17:20 | 1441925 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

What is banning naked short sellers going to achieve anyways? Even without commiting that kind of fraud the normal, legal short sellers are going to enjoy taking a massive chunk out of the market!

Sun, 07/10/2011 - 18:26 | 1442067 carbonmutant
carbonmutant's picture

As other posters have said, this is the kind of news that draws sharks....

Mon, 07/11/2011 - 03:41 | 1442853 combatsnoopy
combatsnoopy's picture

"But I have no idea on how they can enforce this since there are plenty of money hungry EU banks that are eager to take the short side of this trade"

WE HAVE NO MONEY TO BAIL THEM OUT WITH. 

If they want to legalize naked short selling, then the buyers should be allowed to go after the sellers/writers for everything they have if the trade goes bad.  Who enforces this?  the CBOE does.  Unfortunately, we're not dealing with options, we're dealing with bonds.  
Who enforces bond regulation?  The SEC.  Who enforces subprime interest rate swap/uncollatarliased "collateralized" debt obgligations?  Not the CFTC!  
http://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.html

We should let them do anything they want WITHOUT  A  BAILOUT. Then hand the buyers AK47s with bullets  to collect from sellers since neither the courts or the cftc is enforcing this.   If Obama can squander bailout funds to hand AK47's to Mexican cartels- we can give them to naked bond buyers as well. 

Who the heck is buying naked bonds anyways?   What are they smoking?

Sun, 07/10/2011 - 16:06 | 1441768 THE DORK OF CORK
THE DORK OF CORK's picture

Make no mistake the modern free banking CBs are behind this chaos.

The ECB is their new creation freed completly from the confines of the nation state.

The various petty elites held withen the confines of the old nation states do not know what they are fighting.

The true elite look on them as they did  the clans of highland Scotland - bothersome anarchisms that soon will be subsumed withen their new social engineering construct.

Some Nations states are cooperative Campbells such as Germany is now and others are bothersome Jacobite's that must be routed.

My only hope is that their free banking structure is so unproductive & synthetic that it may not be a sustainable vehicle for their dark ambitions.

Once the global CBs created various synthetic currencies the nation state was a dead entity walking.

They have created these Nation states and now wish to destroy them - its as simple as that really.

All this is a macabre theatre.

www.youtube.com/watch?v=kq4SqgxIKM0

 

Sun, 07/10/2011 - 17:27 | 1441945 Gunther
Gunther's picture

Dork,
I hope that you are wrong about Germany.
To some extent Germany cooperates but in other cases not so much.

Examples for non-cooperation are the natgas pipeline through the baltic sea, the vote in the security council on Libya or lately the tank sale to the Saudis.

Changing sides in the own interest has a precedent in Prussian history when the Prussian army refused to fight for the French and declared "neutrality."
http://en.wikipedia.org/wiki/Convention_of_Tauroggen

I can only hope for Germany that this spirit is still alive but I am not sure. Every time I see reports of Merkel's actions I get strong doubts.

Sun, 07/10/2011 - 20:04 | 1442205 hardcleareye
hardcleareye's picture

D of C,

What you have outlined truly is "macabre theatre".  While I truly hope you are incorrect in your view, I grudging have to concede that you may indeed be correct.......

I have enjoyed reading your postings on ZH.

L

Sun, 07/10/2011 - 15:54 | 1441769 HungrySeagull
HungrySeagull's picture

Oh boy!

Cannot wait for the Fireworks to begin!

Sun, 07/10/2011 - 16:04 | 1441780 Seasmoke
Seasmoke's picture

as usual, changing the rules of the game in the middle of the game

 

so just put on a pair of boxers and short to ZERO

Sun, 07/10/2011 - 16:07 | 1441788 mick_richfield
mick_richfield's picture

No naked short-selling ?!?!?

It's none of their damn business what I wear while I'm selling those bastards short!

Mon, 07/11/2011 - 03:35 | 1442855 combatsnoopy
combatsnoopy's picture

we have no bailout for you.  don't come crying for one if the trade goes bad.  

Sun, 07/10/2011 - 16:24 | 1441810 Buck Johnson
Buck Johnson's picture

I thought Spain would b next and then Italy, Italy must have a bunch of problems that are breaking out right now.

Sun, 07/10/2011 - 16:30 | 1441823 camoes
camoes's picture

PORCA MISERIA! MALEDETTO!

Sun, 07/10/2011 - 16:31 | 1441824 DCon
DCon's picture

The time to short Spanish banks could be soon!

 

Sun, 07/10/2011 - 16:37 | 1441839 Black Forest
Black Forest's picture

Wait a minute.

Sun, 07/10/2011 - 16:39 | 1441840 zorba THE GREEK
zorba THE GREEK's picture

 Time to short the whole Ponzi could be soon.

Sun, 07/10/2011 - 16:41 | 1441846 equity_momo
equity_momo's picture

This is pretty much one of the last warnings you will get to escape risk. Timing the top will be impossible but the "short sale ban" meme is pretty much the final straw that the corrupt elite can play.

Sun, 07/10/2011 - 16:43 | 1441850 RobotTrader
RobotTrader's picture

Whenever the gambling table is tilted too far to one side, the PigMen always get help from the Plutocrats to do something to reverse direction and burn the speculators.

Gotta think about it.

If you were Goldman, what is going to be the fastest, easiest way to make money in the shortest period of time?

Burn all the late shorts in the PIIGS bond market.

Sun, 07/10/2011 - 17:00 | 1441886 bob_dabolina
bob_dabolina's picture

Reminds me of an old Chinese Proverb

Man who scratches ass should not bite fingernails.

Sun, 07/10/2011 - 17:06 | 1441900 slewie the pi-rat
slewie the pi-rat's picture

boy, those are 2 tough habits aren't they? 

good luck to both of you!

Sun, 07/10/2011 - 19:55 | 1442196 hardcleareye
hardcleareye's picture

Ughhh (groan)....  thanks for the laugh.

Mon, 07/11/2011 - 07:09 | 1442975 Yen Cross
Yen Cross's picture

 Quote BELOW   /<>/.

Mon, 07/11/2011 - 07:07 | 1442976 Yen Cross
Yen Cross's picture

 Man who scratches "ASS" while sleeping... Wakes up with "Stinky Finger"..

Sun, 07/10/2011 - 17:11 | 1441911 Fazzie
Fazzie's picture

 Goldman might be short themselves. They would short Jesus Christ in the final battle of good and evil if there was a buck to be made.

Sun, 07/10/2011 - 17:24 | 1441935 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

The squid breaks all sorts of laws in the US. What is going to stop them in Europe? Especially when naked short selling will fetch them a mint?

Sun, 07/10/2011 - 17:33 | 1441957 HungrySeagull
HungrySeagull's picture

A Mint?

Those are illegal to own and operate here in the USA.

/snarky comment.

Sun, 07/10/2011 - 17:26 | 1441944 DeadFred
DeadFred's picture

When that battle comes what other side would they be on?

Sun, 07/10/2011 - 17:24 | 1441938 DeadFred
DeadFred's picture

@RobotTrader

I agree, I forgot that rule a couple weeks ago when the whole world was short for the end of QEII and quickly stopped out of my inverse funds. I forgot about the money that can be made from a short squeeze. If there is money to be made the squid will find it. Do you have any suggestions?

Sun, 07/10/2011 - 16:51 | 1441863 CrashisOptimistic
CrashisOptimistic's picture

Which all presumes everything is controllable . . .

Like a Brent spread at $22?  

Sun, 07/10/2011 - 17:01 | 1441889 bob_dabolina
bob_dabolina's picture

eur/usd off to the races

Sun, 07/10/2011 - 17:51 | 1441990 boooyaaaah
boooyaaaah's picture

Naked short selling is allowed only if you are a prime broker. Gsachs, Bernie Madoff yes all naked shortsellers.

To naked short, You sell a stock short with out first borrowing it. This proves it is much easier to sell something you don't own that steal someting you don't own

Tyler can I sell you the Brooklyn Bridge

I will sacrifice for you. And give you a real bargain

I always wondered why you want everyone to own an easily cornered comodity like gold.

And now you think the banning of naked short selling is a travesty

Are you a prime broker?

Neither am I

I will have  to borrow the Brooklyn bridge before I sell it to you. Ha Ha

 

 

 

Sun, 07/10/2011 - 19:00 | 1442122 Sudden Debt
Sudden Debt's picture

about 2 years ago, a unemployed man walking into the Hilton in my home city with some investors.

He sold it for 9 million euro with a first downpayment of 1 million.

The scam was discovered when a construction crew arrived who wanted to remodel the hotel for the new owners.

 

You don't have to own shit to sell it. You just have to say you do and walk away before the shit hits the fan.

 

Sun, 07/10/2011 - 18:55 | 1442113 Sudden Debt
Sudden Debt's picture

In 2015, people will say: We should have let those countries default. It's because of them that the system imploded.

 

When faced with no alternatives, we should face the facts.

                                                                                2015

 

Sun, 07/10/2011 - 19:17 | 1442154 slewie the pi-rat
slewie the pi-rat's picture

can i get one of those borrowed brooklyn bridges?

what if all shorts are not created equal? 
aren't there some real differences among 'naked' shorting:

  • a stock
  • a bond
  • an ETF
  • a currency
  • a commodity
  • ?
Sun, 07/10/2011 - 19:31 | 1442171 sasebo
sasebo's picture

Thinking out loud-

I think the stock market was originally intended to let savers invest in (gamble on) new businesses. If the new business prospered (investors won their bets) the investors were rewarded with stock appreciation &/or dividends. And the economy was improved, produced more or better stuff for consumers. And jobs.

Now, however, we have one big casino where anyone can bet on any of a large number of financial instruments designed soley for gambling. Selling short or naked short or CDS's or CDO's are nothing more than financial instrument used to gamble with no intent whatsoever to improve the economy. It's just people trying to take money from other people & make easy money by not working.

And of course just like on a regular casino the house controls everything. Who is the house? TBTF & their facilitator, the Fed. And where do you think the TBTF's winnings come from? The retail investor & by printing free money & borrowing it from the Fed at 0% & lending it out for 10, 20, 30%. And who do you think controls the price of stock's? Some people with a few to a few hundred thousand dollars or some other people with a few hundred billion?

Rots of ruck on those naked shorts.

  

Sun, 07/10/2011 - 19:55 | 1442193 PulauHantu29
PulauHantu29's picture

Ignore them!

Short the MoFo's !!!!!!!!!

This is supposed to be a "Free Market!"

Sun, 07/10/2011 - 19:58 | 1442199 PulauHantu29
PulauHantu29's picture

BTW, I bought three extra Bags of Popcorn to watch this show.

Sun, 07/10/2011 - 23:56 | 1442623 Bansters-in-my-...
Bansters-in-my- feces's picture

All the Slobs are Cons.....

Damn

 Conslobs.

Every consider central bank ponzi ...??? Silly Conslobs,won't admit the truth.

Mon, 07/11/2011 - 07:30 | 1443003 Bitch Tits
Bitch Tits's picture

I thought naked short selling was already banned - as in, illegal?

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