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

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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.

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