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Greece Bars All Short Selling For 2 Months

Submitted by Tyler Durden on 08/08/2011 10:49 -0400

And..... the idiots are back in charge.

GREEK SECURITIES REGULATOR BANS SHORT SELLING FROM AUG 9
GREEK SECURITIES REGULATOR BANS SHORT SELLING FOR 2 MONTHS

No seriously, it will work this time. We promise.

Goodbye Greek stock market. For a case study of what happens next, check out Vietnam.

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Mon, 08/08/2011 - 10:50 | 1537093 hungarianboy

" For a case study of what happens check out Vietnam. "

LOL Tyler

Mon, 08/08/2011 - 10:53 | 1537129 spiral_eyes

the war or the stock exchange?

i think tyler means the war.

Mon, 08/08/2011 - 10:57 | 1537155 TheTmfreak

I think we might need an "its on like donkey kong" picture for this...

Mon, 08/08/2011 - 10:59 | 1537167 mayhem_korner

Yes, with Mario in a toga.

Mon, 08/08/2011 - 22:14 | 1540584 StychoKiller

Hercules (Greece) steps in front of a two-mile long runaway freight train -- tune in tomorrow for the exciting conclusion...

Mon, 08/08/2011 - 11:13 | 1537246 jus_lite_reading

NOTHING instills confidence like a BAN of normal market activity!!

NOTHING instills confidence in a bank than limiting withdrawls!!

NOTHING instills confidence in the markets like lies from puppets!!!

Mon, 08/08/2011 - 11:23 | 1537291 Shell Game

'BTFD or we grind you into soilent green..'

Mon, 08/08/2011 - 11:30 | 1537328 Gmpx

How come short-selling is normal activity? Short-selling is a trick which requires borrowing of shares from some strange guys who does not have the shares. Normal activity is when you buy or sell shares you have.

Mon, 08/08/2011 - 11:34 | 1537346 Missing_Link

Are you nuts? Short-selling has been around for as long as the market itself. Calling it a "trick" is like calling the car a "horseless carriage" and therefore "unnatural."

Join the 20th century ... (not even the 21st, short-selling is a century old).

Mon, 08/08/2011 - 12:03 | 1537504 fuu

He also thinks ratings agencies should be arrested because they use capital tetters to denote credit worthiness and that is wrong.

Mon, 08/08/2011 - 12:22 | 1537605 vicorjh

I think he's referring to naked shorts and the failure to deliver.

Mon, 08/08/2011 - 12:01 | 1537497 NotApplicable

Well, as long as there are shares available to borrow, it isn't a trick (nobody is forced to loan shares, either). If they aren't available, but "loaned" anyway, then it's fraud.

Besides, without the short sellers (who correctly observed that the asset was over-priced), the market lacks their price discovery pressure looking for a bottom, as they cannot afford to miss it.

Mon, 08/08/2011 - 12:11 | 1537540 AmCockerSpaniel

The key word here is requires "requires borrowing of shares" By NOT not borrowing, the market can be, and is, manipulated. Just read how much the banks have shorted silver. If they don't play by the rules, then just don't allow them to play at all.

Mon, 08/08/2011 - 10:52 | 1537094 Debt Rolling

When a beast is desperate, it will tend to do insane things. Bets that can't possibly pay off. Anything is good to "buy more time", even if that means being in a far worse shape the day after.

Mon, 08/08/2011 - 11:09 | 1537224 mayhem_korner

Looks like the S&P-anking continues - just took a shot at Fannie & Freddie.

Mon, 08/08/2011 - 11:24 | 1537294 redpill

"The more you tighten your grip, Tark, the more star systems will slip through your fingers."

Mon, 08/08/2011 - 11:31 | 1537332 blueRidgeBoy

nice

Mon, 08/08/2011 - 10:50 | 1537098 Sophist Economicus

Are they talking about stocks or underwear?

Mon, 08/08/2011 - 10:57 | 1537152 Long-John-Silver

There is a run on underwear due to excessive shitage. You are limited to one 3-count pack.

Mon, 08/08/2011 - 10:50 | 1537099 JJ McApe

what comes next...

we ban inflation!!! ^-^

Mon, 08/08/2011 - 12:49 | 1537794 Ricky Bobby

No capital controls

Mon, 08/08/2011 - 10:51 | 1537102 fuu

I am waiting for the ban on ALL selling.

Mon, 08/08/2011 - 11:00 | 1537169 hedgeless_horseman

Limit down is neigh!

Mon, 08/08/2011 - 11:01 | 1537181 Gmpx

No need to ban selling. Only fraud should be banned: rating, naked short selling, HFT.

Mon, 08/08/2011 - 11:01 | 1537182 Silver Dreamer

Terrorists! The definition is so broad these days, we might as well add stock sellers to the list.

Mon, 08/08/2011 - 11:06 | 1537213 kridkrid

They've seen how willingly people accept anything done in the name of fighting terrorism. Why not extend the meaning. I would do the same thing if I were a psychopath/leader.

Mon, 08/08/2011 - 10:51 | 1537103 agent default

Coming soon to a market near you.

Mon, 08/08/2011 - 10:51 | 1537104 Global Hunter

Say goodbye to the only kind of rally left (besides central banks lifting all the offers), the short cover rally.

Mon, 08/08/2011 - 10:51 | 1537105 Quintus

How long, I wonder, will it be until this goes global? This week? Next week?

Mon, 08/08/2011 - 10:53 | 1537123 The Shootist

Does this have much precedent?

Mon, 08/08/2011 - 10:56 | 1537144 Quintus

Quite a lot of it went on during 2008. Particularly in Financial stocks.

Mon, 08/08/2011 - 10:51 | 1537107 papaswamp

Wow this shit is snowballing downhill quickly.

That will stop the collapse....banpocalypse bitchez!

Mon, 08/08/2011 - 10:51 | 1537110 Stoploss

GOLDen. Steady as she goes..

Mon, 08/08/2011 - 10:52 | 1537112 Hulk

Speaking of shorts, the fraudulent commercial paper Au shorts should be puking up blood about now...

Mon, 08/08/2011 - 10:58 | 1537159 Quintus

I wish. Unfortunately all they appear to be puking up are even more fraudulent paper Au shorts.

I wonder if they are planning a 3rd consecutive day of raiding the metals at 12:00 precisely. Why not? It's not as if anybody can or will stop them.

Mon, 08/08/2011 - 11:08 | 1537220 Hulk

No argument here. But one day, the fraudulent paper market will bust...

Mon, 08/08/2011 - 10:53 | 1537117 Smiley

When can I buy the Acropolis for 10 Gold Eagles?

Mon, 08/08/2011 - 11:25 | 1537301 Ratscam

It will be sold to Timi Geithner for 1 Eagle. Capiche?

Mon, 08/08/2011 - 10:53 | 1537121 buck777

Greeks = Pea munching

Mon, 08/08/2011 - 10:53 | 1537122 BlackholeDivestment

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

Mon, 08/08/2011 - 10:54 | 1537131 lizzy36

Excellent.

So we are back to blaming gravity for plane crashes.

Bet Bernanke is stroking that beard furiously right now ;)

Mon, 08/08/2011 - 11:11 | 1537238 Gert_B_Frobe

More like circle stroking with his "buddies".

Mon, 08/08/2011 - 10:55 | 1537134 sulfur

Please ban HFT and long buying for the next 5 years

so Kramer can suck it all...

Mon, 08/08/2011 - 10:54 | 1537135 anynonmous

I guess they can't find anyone to interview at Bloomberg today

so the dimwit anchors are interviewing each other

Lisa: so bethany do you think Moody's will follow S&P

Bethany: well you know that's a great question Lisa but I don't have a clue

Lisa: stay tuned for more with Bethany, we'll be right back

Lisa: investors getting whipsawed, the VIX is all over the place all right lets turn back to Bethany (for some more mindless banter)

Mon, 08/08/2011 - 11:00 | 1537174 pepperspray

LOL nI've got the audio player on so I heard it too. Except the quiver in Bethany's voice is pronounced when there's only the sound.

Mon, 08/08/2011 - 11:00 | 1537179 Tinsu

Bethany has a really big ear holding back all of that black hair.

Mon, 08/08/2011 - 11:03 | 1537193 anynonmous

I think that was still Saturday nights hair

Mon, 08/08/2011 - 11:04 | 1537201 Tinsu

...looked like Sat nite's little black dress too!

Mon, 08/08/2011 - 11:15 | 1537138 Cognitive Dissonance

And..... the idiots are back in charge.

They have always been in charge. They were just pretty good at hiding their idiotcy.

And we were pretty good at not looking.

Mon, 08/08/2011 - 10:55 | 1537140 Ethics Gradient

In the meantime, the headlong rush for parity between Eur and ChF resumes.

I wonder how may underwater European mortages there are now given a 34% increase in 3 years.

Mon, 08/08/2011 - 10:55 | 1537142 Seasmoke

Seriously, this is the worst thing these corrupt morons can do

Mon, 08/08/2011 - 11:01 | 1537183 slackrabbit

Nope, I garuntee you, there's plenty more stupidity to go around ;-)

Mon, 08/08/2011 - 10:56 | 1537146 alien-IQ

Ah yes...that'll fix it. Brilliant!

Mon, 08/08/2011 - 10:56 | 1537147 skistroni

The capitalisation of the Greek Stock Market (All of it!) is now at 36 Bln EUR. It's a steal, isn't it?

By the time they will try to ban short selling our bonds, Bill Gates and Warren Buffet will probably be able to buy the whole country with their combined assets. Including the stock market, the land, all real estate, the people and.... the government of course.

Wish I had some cash available when that moment comes....

Mon, 08/08/2011 - 11:08 | 1537219 LeBalance

but you will not be invited to the auction.

Mon, 08/08/2011 - 12:15 | 1537557 kaiserhoff

so cynical..., and so true.

Mon, 08/08/2011 - 10:57 | 1537156 TTaco

Source please?

Mon, 08/08/2011 - 12:15 | 1537558 ManufacturedOpinion

The source is the internet.

Check it out.

The only thing the USA manufactures these days is YOUR OPINION !!!

Mon, 08/08/2011 - 10:58 | 1537164 The Shootist

DAX down 4.93%

Mon, 08/08/2011 - 11:00 | 1537176 scratch_and_sniff

Blood on the dancefloor...

Mon, 08/08/2011 - 10:59 | 1537165 The Alsatian

There goes what's left of Greek liquidity - other than olive oil that is.

Wait, was that an oxymoron?

Mon, 08/08/2011 - 22:29 | 1540662 StychoKiller

Ouzo FTW!!

Mon, 08/08/2011 - 10:59 | 1537168 caerus

"evil speculators"

Mon, 08/08/2011 - 10:59 | 1537170 digalert

HEY! Where's the G7 infantry?

Thought they were gonna have guns blazin.

Mon, 08/08/2011 - 11:01 | 1537172 Arch Duke Ferdinand

Denninger nails it.

1/They Will Never Change: Vote Them Out.....

2/Uh Oh... AIG Intends To Sue BAC?.....

3/CONgress and Obama: You Own This.....

http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/08/they-will-nev...

****OT: Hilarious Upside Down 2 minute video.....

http://www.youtube.com/watch?v=W0Uju3t

Mon, 08/08/2011 - 11:47 | 1537435 Tree of Liberty

Unfortunately, Karl continues to lead many astray by being perpetually wrong on Gold.

Mon, 08/08/2011 - 11:00 | 1537173 alexwest

actualy 'not back in charge', but
jsut returned from summer vacations..

alx

Mon, 08/08/2011 - 11:00 | 1537177 GD

Hey Drachma dudes, that will make it worst..take the pain..

In the mean time Brazil Bovespa down over 5% for the day and over 27% YTD, looking to take the 50K level with volume. Earlier not one stock was up for the day..Samba time..

Ugly all over...

Mon, 08/08/2011 - 11:02 | 1537190 Northeaster

The funniest thing I read about Greece came from Kyle Bass:

http://www.scribd.com/doc/48887451/Kyle-Bass-Feb-14

"In one of the more comical meetings we have ever attended, one chief economist at one of the largest banks in Greece surmised that if the sovereign could transfer €100 billion of government debt to the personal balance sheets of the population that it would be a potential “magical” fix for the state’s finances (and subsequently pointed out that Greece would not be such an “outlier” as a result). When asked how the Greek state could accomplish such a feat, he said he did not know and that maybe Harry Potter could find a way. It is hard to believe, but he was completely serious."

Classic.

Mon, 08/08/2011 - 11:04 | 1537197 buck777

Why is silver stagnant gentlemen please?

Mon, 08/08/2011 - 11:25 | 1537304 ViewfromUnderth...

everyone's got one...mine is:

Gold attracts the really big hitters and the blinkers are coming off. Jim Sinclair's magic $1,764 is close...and that will be a battle, because after that the emperor has no clothes. When the shit really hits the fan gold is the go-to. The big hitters will take the gold price to the stratosphere as they break ranks. Just think what happens, the logistics, of getting your reserves out of the reserve currency...at the moment way less than 1% of emerging economies' reserves are in gold let alone the hedge funds and the billionaires who just realised they are allergic to Kool-Aide.

50% of silver demand is industrial...so, times like these are bittersweet. Sure, silver is being re-monetised; sure Comex is running out; sure, the Chinese are/will buy it big-time; sure, new patents for silver are greater than all patents for other metals combined... so silver has a very bright future...but this is now. Actually, I think it is holding up well, but then tomorrow is an FOMC meeting and COT Tuesday so I am waiting to see of they take it down to $36.75 which was a resistance line but doesn't seem to have been tested.

Mind you, when Ben QE3s you will see the silver lining.

Mon, 08/08/2011 - 12:18 | 1537574 ManufacturedOpinion

Mostly because it's NOT GOING ANYWHERE!

The only thing the USA manufactures these days is YOUR OPINION !!!

Mon, 08/08/2011 - 11:04 | 1537200 TheLooza

this will further greece the skids.

Mon, 08/08/2011 - 11:05 | 1537205 SilverDoctors

And Fannie/Freddie just downgraded to AA+ by S&P.

Mon, 08/08/2011 - 11:09 | 1537223 anynonmous

sorry I wasn't paying attention but that sounds to me like a gigantic upgrade

Mon, 08/08/2011 - 11:12 | 1537244 glenlloyd

you're right, it is.

Mon, 08/08/2011 - 11:14 | 1537250 Gert_B_Frobe

Mon, 08/08/2011 - 11:06 | 1537208 tekhneek

Price controls anyone? This shit's hilarious.

How many times does this have to happen? Honestly. I don't think they'll ever learn. This final global collapse is going to be awesome.

Mon, 08/08/2011 - 22:32 | 1540682 StychoKiller

"When the Law is on your side, pound the Law. When the facts are on your side, pound the facts. When neither the Law or the facts are on your side, pound the table!" -- Abe Lincoln (?)

Mon, 08/08/2011 - 11:06 | 1537210 monopoly

Never works. Just delays the inevitable.

Mon, 08/08/2011 - 11:08 | 1537212 Dr. Engali

Who will fall first Greece or BAC? Full disclosure I have put's on BAC

Mon, 08/08/2011 - 11:07 | 1537218 buck777

Gold is within £13/oz of Platinum here in the UK. Unbelievable.

Mon, 08/08/2011 - 11:08 | 1537221 franzpick

To the wealthy Greek shipping tycoons: Steady As She Sinks.

Mon, 08/08/2011 - 11:10 | 1537233 kito

the real headline that tyler omitted :) Greece gold Bars All in Short supply, no dealer Selling For 2 Months

Mon, 08/08/2011 - 11:11 | 1537237 Mr Lennon Hendrix

No options? What is this, a sandbox?

Mon, 08/08/2011 - 11:12 | 1537239 redpill

Mon, 08/08/2011 - 11:12 | 1537240 Yen Cross

Golf Clap and a Olive Branch!

Mon, 08/08/2011 - 11:15 | 1537254 monopoly

BAC down 11% GG up 4%. Where do you want your dollars to be.

Mon, 08/08/2011 - 11:16 | 1537259 Cone of Uncertainty

As if the price discovery mechanism of the markets wasn't already fucked enough.

Fuck these idiot regualtors, they deserve every ounce of economic pain they get.

I hope they all go broke and die hungry.

Mon, 08/08/2011 - 11:18 | 1537265 Nate H

eventually this will happen everywhere. Bans of this and that, and eventually there will be no market (either via stealth nationalization where 'ownership' is meaningless, or via currency disruptive event.

Mon, 08/08/2011 - 22:37 | 1540699 StychoKiller

Coming up next...

"Atlas Shrugged": Directive 10 289...

In the name of the general welfare, to protect the peoples security and total stability, it is decreed for the duration of the national emergency that:

#1. All workers, wage earners, and employers of any kind whatsoever shall henceforth be attached to their jobs and shall not leave nor be dismissed nor change employment, under penalty of a term in jail. The penalty shall be determined by the Unification Board, such Board to be appointed by the Bureau of Economic Planning and National Resources. All persons reaching the age of 21 shall report to the Unification Board, which shall assign them to where, in its opinion, their services will best serve the interests of the nation.

#2. All industrial, commercial, manufacturing and business establishments of any nature whatsoever shall henceforth remain in operation, and the owners of such establishments shall not quit nor leave nor retire, nor close, sell or transfer their business, under penalty of the nationalization of their establishment and of any and all of their property.

#3. All patents and copyrights, pertaining to any devices, inventions, formulas, process and works of any nature whatsoever, shall be turned over to the nation as a patriotic emergency gift by means of Gift Certificates to me signed voluntarily by the owners of all such patents and copyrights. The Unification Board shall then license the use of such patents and copyrights to all applicants, equally and without discrimination, for the purpose of eliminating monopolistic practices, discarding obsolete products and making the best available to the whole nation. No trademarks, brand names or copyrighted titles shall be used. Every formerly patented product shall be known by a new name and sold by all manufactures under the same name, such name to be selected by the Unification Board. All private trademarks and brand names are hereby abolished.

#4. No new devices, inventions, products, or goods of any nature whatsoever, not now on the marker, shall be produced, invented, manufactured or sold after the date of this directive. The Office of Patents and Copyrights is hereby suspended.

#5. Every establishment, concern, corporation or person engaged in production of any nature whatsoever shall henceforth produce the same amount of goods per year as it, they or he produced during the Basic Year, no more and no less. The year to be known as the Basic or Yardstick Year is to be the year ending on the date of this directive. Over or under production shall be fines, such fines to be determined by the Unification Board.

#6. Every person of any age, sex, class, or income, shall henceforth spend the same amount of money on the purchase of goods per year as he or she spent during the Basic Year, no more and no less. Over or under purchasing shall be fined, such fines to be determined by the Unification Board.

#7. All wages, prices, salaries, dividends, profits, interest rates and forms of income of any nature whatsoever, shall be frozen at their present figures, as of the date of this directive.

#8. All cases arising from the rules not specifically provided for in this directive, shall be settled and determined by the Unification Board, whose decisions will be final.

-- And you thought "Atlas Shrugged" was a work of fiction!

Mon, 08/08/2011 - 11:19 | 1537274 Bam_Man