UniCredit Reopens After Halt, Plummets

Tyler Durden's picture

Unicredit, which was halted briefly before after hitting its down limit, has reopened, and the investing public welcomes this by total dumpage. Stock down as much as 10.5%. Expect Consob to elevate up its naked short selling ban to a ban of all financial stock shorting.

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NoRestForTheWicked's picture

I love the smell of a crash in the morning.

Fish Gone Bad's picture

I have a bag of popcorn at the ready!

Boston's picture

Popcorn: check

Treasuries: check

 

Now, I'm sitting back and enjoying the show!

 

The PolyCapitalist's picture

ECB attention on keeping contagion from spreading to Spain has left the Italian rearguard vulnerable and wide-open to speculative attack. Text book Too Big to Save so don't even bother trying. Spain was potentially salvageable and hence warranted defense, but if Italy buckled then perhaps there really never was anything that the ECB could do anyway?

http://www.polycapitalist.com/2011/07/has-ecb-left-italian-rearguard-wide.html 

Mountainview's picture

You remember Citi in 2008... It sounds and smells similarly !!!

SoNH80's picture

People forget, but the equity capitalization plunge of the TBTF banks in '08 really freaked counterparties out, it was both a symptom and contributing factor of their insolvency.

slaughterer's picture

Shorting the Italian banks has been uncomplicated until this weekend, when we ran into regulatory complications.  We are using our legal department to see if what the Italian stock market is trying to enforce against us is even legal.

schismjism's picture

i sold my shorts and now all i have is my socks.

Cognitive Dissonance's picture

I can't wait until the fun comes to America.

Wait a minute....................

sheeple's picture

TIMBERRR [A term i learned from sinoforest's lol]

firstdivision's picture

Welcome to the Recovery bitches!

critical_mass_soon's picture

prepare for depleating inventories at every bullion dealer accross the globe, as the rush for tangible assets hots up, assets with no counter party risk and plenty of intrinsic value!

 

kiss my ass flexible money supply! aka the ponzi of the last 100 years!

geminiRX's picture

Wait till zerohedge and bloggers such as us are deemed "financial terrorists"....for disseminating information (the truth) contrary to state propaganda (the lies).

JustPrintMoreDuh's picture

You are to report to the nearest re-education center at once.

Jim in MN's picture

07-11 10:22: Deutsche Bank breaks support, next support is at $52.85

Who said Germans and Italians can't do anything together?

camoes's picture

Not cool man, forgot WW2?

Jim in MN's picture

It all started with the Crimean War...

doomandbloom's picture

why are the peasants not buying?

Gandalf6900's picture

 

don't worry I'm buying...woooooohoooooooooooooooooooooooooo

ZackAttack's picture

Because, of course, banning stock shorts directly addresses the problem of bond yields.

walküre's picture

Short term bounce is probable.

Might be a good quick trade with tight stops.

oc's picture

In other news, looks like TPTB  are really trying to defend silver 36 and gold 1550. Nice take down, nobody will notice. 

Jonas Parker's picture

And they'll keep trying, until the PM marked blows up in their faces... which could be any time now.

Sudden Debt's picture

It's not ethical to short stock like that!

...

WHOEHAHAHAHAHA!!

 

seriously... Sarkozy is going to go after you...

Gandalf6900's picture

 

this shit stinks

Gandalf6900's picture

 

and thats all I have to say about that

walküre's picture

Italy, Lybia, oil in Euro, CIA, "revolutions"....

The US is fucking around in the Middle East and North Africa BIG TIME.

It's always been that way. The US needs wars and rumors of wars to keep their ponzi going.

Low and behold anyone who dares to touch the "reserve" status of the US Dollar and starts to trade outside of the box.

What the EU leadership should do is expand the EU trading privileges across Northern Africa, send all US military out of Europe and move away from unfair global trading practices favored by US imperialism.

Hacksaw's picture

So, now it's the USA's fault that the Euros shit in their nest and don't have enough Bounty to clean it up?

Bawhahahaha

It would shickle the tit out of me if you jackasses sent the terrible Americans packing.

Where's all that Euro arrogance this morning?

walküre's picture

Europe was doing fine, too fine. North Africa was about to accept Euros for oil.

Which is why the US had to instigate the North African "rebellions".

Euro arrogance? Laughable coming from a Yank. What are you going to do with all that military personnel when it comes back? More food stamps?

ThirdCoastSurfer's picture

Isn't the real problem with shorts in times of market volatility that they are a negative liquidity event because they post as a credit (in banking terms) to the market but the debit does not arrive until they are purchased back?

If I buy a stock from a broker the cash I provide them can be used by them (since a internal match is sought before any external and between brokers there are settlement dates), but, if I short a stock, this money becomes tied up and unavailable, right?  

Severe spikes in shorting leaves brokers in short term liquidity binds and by scaring shorts by increasing reporting requirements and the like it provides brokers and others with a buffer, right? 

oogs66's picture

the real problem is that politicians don't understand the real problem.  shorts only work because the companies suck, you can't fix a company sucking by banning shorts...once the shorts are gone, company stock prices can go into freefall even faster as the short covering bid is gone.

ThirdCoastSurfer's picture

How can they not understand that? They epitomize the peter principal.  

Tartarus's picture

Some might feel tempted to think this is due to concerns about Italy itself, but I think this is as much about Greece as it is about Italy. Look a bit at the Greek bank presence in the Balkan Peninsula. A Greek default would inevitably mean Greek bank failures and those Greek banks are major players in several Eastern European countries. This creates a lot of potential for contagion and Italian banks would likely be the ones with the greatest exposure to it of all the big European countries.

Gandalf6900's picture

 

wrong, a Greek default would sink the German and French Banks and not the Italian ones which are for the most part exposed to their own countries debt

Tartarus's picture

You are talking about sovereign debt and that was clearly not what I was talking about. I am talking about the inevitable collapse of the Greek banking system and how that will will impact the Italian banking system more than those of other big European countries.

57-71's picture

Methinks someone tossed herbicide on the green shoots.