No More Shorting Of Financials In Europe... Ever?

Tyler Durden's picture

The second sequential ban of short selling in Europe, which was supposed to expire at the end of the month, has just been extended. At this point we are certain Europe will not allow shorting of financial stocks. Ever. Or at least until the Eurozone implodes... Which will be far sooner than 'ever.'


Next to join the part: France. In other news, since the short sale ban was instituted, SocGen is down 18.5% and UniCredit is down 26.6%.

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papaswamp's picture

Fo Eva...bitchez!

Ahmeexnal's picture

now that's what I call a rigged market.
a sad attempt to delay by a few seconds the inevitable eurocalypse.

redpill's picture

They should just outlaw all selling, it's inhuman!

junkyardjack's picture

Tax all sales of stock at 75% whether its a profit or a loss you still have to pay taxes on your loss like it was a gain, effective yesterday.  That'll keep the market afloat

DoChenRollingBearing's picture

As the Bearing rolls ever so slowly to the door...  Seeking real assets...  First rats off the ship win!

Pladizow's picture

So where will the shorters turn?

This will simply be played by shorting US financials!

Good night BAC!

Ahmeexnal's picture

"multiculturalism has failed"

TruthInSunshine's picture

This is just one additional, incremental step to project a brave face of confidence onto equity/banking/financial markets, because they wouldn't feel the need to resort to this unless everything was very healthy and stable and liquid - which it is.


Manthong's picture

.. and in other news,  the European Center for Nuclear Research in Geneva, Switzerland  announced today that it is immediately  repealing the laws of gravity and in Rome, a press release from the Vatican states His Holiness , the Pope has reached an accord with Satan that relinquishes authority over all of the souls within the European Union to him.

mick's picture

Try the deutsche bank short european financials etf.  Still trading, if you fancy the counterparty risk.

fuu's picture

They see me rollin' They hatin' Patrollin' they tryin' to catch me shortin' dirty. Tryin' to catch me shortin' dirty.

tekhneek's picture

Well looky there: (

Tue, 09/27/2011 - 12:21 | Link to Comment tekhneek
tekhneek's picture
Vote up! 3
Vote down! 0

Next up: No short selling... after that? Owning gold and silver is illegal.

After that... price controls... and after that? Confiscation.

1 for 4 so far...

gojam's picture

Junkies fear cold turkey.

Same goes for ceasing shorting bans and ceasing snorting plans

Zero Govt's picture

The politicians only want 'Up' so they're banning 'Down' ...problem is without any downs there's no ups, it's a flatline ...put another way, the market has no buyers or sellers, it's a Dead market.. extinct ...a Pythonesque "Dead Parrot"

Now when politicians ban shorts you know it's time to go short... and the only way to go short (now) is to get out of the market... I think the politicians have painted themselves into a corner on this one.. another work of genius from our 'leaders' collapse 100% guaranteed, how do we short this???

disabledvet's picture

I like that! What are we dis-incenting then? Hmmmmm. Food comes to mind. What else? Oil? Yep. How 'bout we just "turn it off' instead? We can do that you know.

LeBalance's picture


/just suggestin'/

Young Buckethead's picture

North Carolina Governor Bev Perdue says we should suspend Federal elections. Peter Orszag, former Director, OMB,  says we need "less democracy". Less than a week after the ZH comment about the well-publicized German book saying "democracy is an enemy of the people".

We are either going to "voluntarily" ask for Martial Law, or . . .

All so the people that created this absolutely fucked mess can stay in power.

We are witnessing the end of the United States, and every human being that ever died defending this country is having their graves pissed on.

Every symbol of the old US will have to be destroyed, otherwise it will be a reminder of what was, and will be seen as inciting revolution. Let them try to shove that down our throats.

pods's picture

Sorry, Perdue made a joke and Drudge ran with it like she wears Jack boots.

She does wear Jack Boots, but wasn't expressing an honest desire to suspend elections.

And why the hell would they suspend elections?

That is the hope that the sheep hold on to.  The hope that elections will change things.

Elections are to keep the masses placated, not to change anything.


Hedgetard55's picture



     So, you are one of the dopes that believed that spin about a joke.

pods's picture

Well I guess I am since I live here, and happen to use my mind to think.

So a sitting governor who is pretty much hamstrung by the state congress announces plans for suspending elections at a Rotary Club meeting?

As I said above, elections are for public satisfaction, nothing else.

Look at how much energy here is wasted on the game of politics.  The arguments about debt reduction, etc.

We have not, as a nation, applied one penny to paying down the principal of our national debt in 50+ years.  

It is a game of self delusion. Our debt supply is our money supply.

To decrease our debt would decrease our money supply.  So it won't happen.

That is why we will not have a "balanced budget" while the economy is contracting, strike that, expanding less than the aggregate level of interest on the debt.

Because our debt supply MUST expand or we die.

We have been programmed as a people to KNOW when tyranny arrives. Tanks in the streets, etc.  Because that will NEVER come.

If it did, we all would know tyranny has arrived.  

Same with suspending elections.  As long as the sheep hold on to the noble idea that voting changes things, we WILL have voting.

Religion is not the opiate of the masses, the hope that elections can change things is.

Sorry for the long rant.  Short answer, yes, I am a dolt that believes it was a joke.



Rumpelstiltskin's picture

Just listen to the audio and then say, with a straight face,

that it was a joke. I dare you.

New_Meat's picture

Ya, and Peter Orszag made the joke in "New Republic" linked in this WAPO Story, so you know its true.

- Ned

disabledvet's picture

With spike heels? And a leather tank top? I'm kinda picky when it comes to fascists too.

Leopold B. Scotch's picture

Well... then again, the founding fathers of the United States were no fans of democracy.  What they wanted was LIBERTY. 

The U.S. is NOT a Democracy, it is a Constitutional Republic, with said Constitution intending to preserve individual liberty by enumerating limited powers of the government, the rest reserved for the individual and states, whose constitutions themselves handled things similarly at the time, although asserting varying degrees of power against the individual.  Some states respected liberty more than others.

Democracy and Liberty are not synonymous. 

We are too quick to defend the raping of liberty by democracy.  Democracy can be shit, or it can be marvelous.  Generally it degrades into chaos. Democracy launders all sorts of shitty behavior that would land you in jail if you did it as an individual to others.  Put it to vote, win in an election, and use the same tactic on a specified group lacking political clout to defend itself, and democracy says "perfectly legal"....

zorba THE GREEK's picture

Without short sellers there is no short covering, hence no floor under

the market. Baning short selling is one of the most effective ways to

drive a market down. Who knows, maybe that's the plan?

NotApplicable's picture

All while blaming the market, TADA!

WALLST8MY8BALL's picture

Short sellers got no reason
Short sellers got no reason

Short sellers got no reason
To live

They got little hands
Beady Little eyes
They walk around
Tellin' great big lies
They got little noses
And tiny little teeth
They wear platform shoes
On their nasty little feet

Well, I don't want no short sellers
Don't want no short sellers
Don't want no short sellers
`Round here

Short sellers are just the same
As you and I
(A fool such as I)
All men are brothers
Until the day they die
(It's a wonderful world)

Racer's picture

oh those naughty shorters, they are the cause of all the problems....

Nascent_Variable's picture

Damn shorters indeed.  Sitting at a government desk in Athens for a couple years, then retiring with full gvoernment benefits. Those short term workers are killing the...

Wait.  What are we talking about again?

pirea's picture

Not only Greece, here in BC, Canada, some government leaders, retired from plitics after 2 years of service, with serverance of $400,000-600,000.

It is an universal blood sucking for the parasites.

NotApplicable's picture

Weird thing is, the sheeple demand parasites. So, until they relent, parasite on!

HelluvaEngineer's picture

Hmmm...might be a great time to short the ones over here.  I hear a creaking and moaning sound coming from ES.

NotApplicable's picture

A great time? As in the old saying, "the market can remain irrational longer than you can remain solvent?"

Trying to time a market is one thing, and a casino another. But trying to time a fraud? That's just playing into their hands, picking up pennies in front of a bull dozer.

Motley Fool's picture

Thou shalt not short. haha.

Tim Knight from Slope of Hope's picture

And the law of unintended consequences shows itself yet again.

faustian bargain's picture trying to catch rain in a sieve...

SheepDog-One's picture

No one to squeeze just hastens the big drops coming...good.

baby_BLYTHE's picture

Dr. Webster Tarpley said banning short selling is the one of the best moves the Modern State can make to fight back against the globalest banksters. I myself don't understand the concept too well, is he wrong?

LeBalance's picture

Webster does not understand that the Modern State is a creation of the globalist banksters.  And even within that illusion the market allows one to bet "long" so of necessity if it is to be "fair" it must allow one to bet "short."  Otherwise it is not a market, is it?

Josh Randall's picture

Naked short selling should be banned, but short selling in it's simplest form is just a part of the financial capitalist market

kaiserhoff's picture

Naked selling of puts is by far the best way to buy stock, but you have to have a couple of nickles to play the game.

pirea's picture

Why bet when in fact you should invest. Want to bet, go to casino.

ThirdCoastSurfer's picture

I used to be an "investor".  

That is until, as a common shareholder, I watched all my due diligence fly out the window to an endless series of stock dilutions, senior debentures and punishing bridge loans that had little to do with protecting the common shareholder but everything to do with pandering to the momo while spending money on pet projects like they were shovel ready in Iraq. 

Few CEO's give a damn about common shareholder equity. Why the hell should they work for free when they can pander to power and share in the wealth. 

Who among you has ever sent so much as a card of thanks for a decent return when, like K street, the investment community lavishes gifts upon the heirs as if they were royalty? 


DoChenRollingBearing's picture

@ b_B

THAT is a good question, and I do not know the answer.  I think I'll look into it.  Good reporting.