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No More Shorting Of Financials In Europe... Ever?
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.'
- ITALY MARKET REGULATOR CONSOB EXTENDS SHORT-SELLING BAN - BBG
- SPAIN'S CNMV REGULATOR EXTENDS SHORT-SELLING BAN - BBG
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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Fo Eva...bitchez!
now that's what I call a rigged market.
a sad attempt to delay by a few seconds the inevitable eurocalypse.
They should just outlaw all selling, it's inhuman!
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
As the Bearing rolls ever so slowly to the door... Seeking real assets... First rats off the ship win!
So where will the shorters turn?
This will simply be played by shorting US financials!
Good night BAC!
Synthetics!!
"multiculturalism has failed"
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.
/s/
.. 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.
Try the deutsche bank short european financials etf. Still trading, if you fancy the counterparty risk.
SQQQ!!
They see me rollin' They hatin' Patrollin' they tryin' to catch me shortin' dirty. Tryin' to catch me shortin' dirty.
Well looky there: (http://www.zerohedge.com/news/sec-telling-us-something-schapiro-cut-glob...)
1 for 4 so far...
Tick-tock...
Junkies fear cold turkey.
Same goes for ceasing shorting bans and ceasing snorting plans
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' ...market collapse 100% guaranteed ..er, how do we short this???
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.
selling is unpatriotic!
So too is "saving".
you-rock-a-lips?
/just suggestin'/
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.
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.
pods
pods,
So, you are one of the dopes that believed that spin about a joke.
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.
pods
Just listen to the audio and then say, with a straight face,
that it was a joke. I dare you.
Ya, and Peter Orszag made the joke in "New Republic" linked in this http://www.washingtonpost.com/blogs/ezra-klein/post/is-peter-orszag-agai... WAPO Story, so you know its true.
- Ned
With spike heels? And a leather tank top? I'm kinda picky when it comes to fascists too.
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"....
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?
All while blaming the market, TADA!
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)
oh those naughty shorters, they are the cause of all the problems....
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?
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.
Weird thing is, the sheeple demand parasites. So, until they relent, parasite on!
Hmmm...might be a great time to short the ones over here. I hear a creaking and moaning sound coming from ES.
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.
Thou shalt not short. haha.
And the law of unintended consequences shows itself yet again.
Cue the Rain!
...like trying to catch rain in a sieve...
No one to squeeze just hastens the big drops coming...good.
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?
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?
Naked short selling should be banned, but short selling in it's simplest form is just a part of the financial capitalist market
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.
Why bet when in fact you should invest. Want to bet, go to casino.
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?
@ b_B
THAT is a good question, and I do not know the answer. I think I'll look into it. Good reporting.
Green.
Well, I looked into it, superficially. I still have no idea. Now it's up to more knowledgeable ZH-ers to properly answer your question b_B.
I believe he was talking about naked short selling. Very different.
I just went back and looked, yes he did say naked short selling.
Banning central banking and legal tender laws would be more effective. Control of currency is the ultimate lever.
If others are correct that he was referring to naked shorts, not regular shorts, then that would be good too. However, a ban on naked shorts is really just an extension of the logic of anti-fraud. Similarly the division of banking created by Glass-Steagall...kindof like 'truth in advertising'. You can't tell someone you're keeping their money safe and at the same time turn around and fractionally lend it out 9 times.
I would take care when listening to that man's solutions. He is very bright, but he has own agenda. Look at his solutions and then compare them to those who implemented them before and what comes from it. I don't see how more centralized control and regulation will help us here, but I do see how some might use it to gain personal power. After all if people don't beleive in regulatory capture at this point (Goldman anyone?)then clearly they are asleep at the wheel or have an agenda.
Too bad he doesn't post here anymore. He would berate you, emotionally, with multiple exclamation marks!!! And probably call you a Rand-worshiping neocon fascist, just for good measure.
Yes well Dr. Bunson Honeydoo begs to differ!
He's a good historian and political commentator But, he's a marxist...So naturally his economic biases are Broken to the core....He believes we need a central bank to provide "liquidity". He believes we need a us treasury market for collateral swap transactions internationally (I personally believe it's a fallacy to use a nations Debt as collaterally...) and that cheap credit is good....so nobody can acquire savings and own property outright just minmum payment and refi till you die...Like I said good on history and political commentary...economics he is a joke and could be dangerous if listened to...
As if....
Soon they will forbid anyone from selling long positions as well.
They are doing that by reducing the circuit breakers.
Think about trying to sleep at night in a limit down market.
Yes...... Green and .40 caliber! Another excellent comment Smiddy.
It makes my head hurt to think about being unable to sell for days if the market has a slow motion crash. Yet another reason for diversification. Gold is good to help sleep a little better.
Why would anyone be "long" in Greek, Spanish, or Italian bank stocks? That's like being "long" in Texas Lottery Tickets - you have a 14,000,000 to 1 chance of collecting....
Because it sounds better in a foreign language than in Texan. As in "I am el longo."
No worries, we shall bring them down with puts!! Go ahead and ban puts, ootm calls, better yet, just close down that bastardized excuse for a market while they're at it!!
Voila Fixed!!!
Everybody up against the Wall, MoFo's!
Nobody ain't allowed to sell noth'n.....only BTFD...got that!
When in doubt double down on strategies that aren't working.
Should be the motto of capital markets since 2008.
Must.Not.Take.The.Loss.
Right...meanwhile people are saying the next thing to happen is those who refuse to ever take any loss will now step forward and volunteer to be downsized?
Whats next is the world war.
Sheep, Just curious, are you thinking it will happen with conventional weapons, nuclear, or financial/trade wars and protectionism?
We've already been in financial wars, Im sure it will go nuclear.
Yep, was afraid you might say that. Possibly an escalation on the financial side to get us there. Possible scenarios seem endless.
Nuclear is good! Less suffering if you're among the lucky ones at ground zero.
One minute you're eating your raisin pie, the next you are like the Silver Surfer blazing across the universe at quantum speeds, galaxies passing by like snowflakes outside the car window (zooomin!)
The banksters will find themselves blind and prodding the packed dirt with their snot-covered heads, seeking a pathway through the top soil, until that big mole gets them. It all good.
Actually if u never sell technically speaking you do not take the loss. My advice? Don't ask how long. And ask that buddy of yours how his bank is doing.
pretty pink sheets.
Bang head against wall. Repeat
Cost bases it to never face it!
Is that CONSOB...OR
ConSlobJob
It's just the beginning, they should ban all naked derivative plays, ban CDSs; in fact go back to the financial instruments pre-deregulation and pre-G/S revocation. Ban all financial activities of the bubble economy. Make the financial industry the "baggage carrier" of the real economy and NOT the diva! Like the Squid is. Also cap the leverage ratios used by HF as they should cap the debt/equity ratios of banks. The whole shadow banking today is NOT regulated. And ZH knows that.
And label it "going forward to rock throwing!" as well. It's important to create a sell side methodology in your evil plan as well.
If the squid can play naked cds legally then i should be able to take out life insurance on my neighbor's barking dog too. ;)
Socialist in a state of shock.... dreamers who have to wake up.
And not to mention the fintrans tax starting 2014...after the fin holocaust, yeah, all is solved!
Thats like using a garden hose to help the hindenburg ha ha http://www.youtube.com/watch?v=pUVDmXvXcbk
So now if I wish to hedge my Eurobank counterparty risk, I have to trade CDS with the Golden Sack!
How convenient.
Everyone is going to take it in the shorts, so start with the shorts - good plan - Action, Jackson ! Moonwalk, anyone ?
Why don't they just pick a price for the bank shares and say "that's the price"...This is going to end very badly as the Eurozone pretends even more!! No 'conditioning' of the masses is going to make the fall-out better...Just more time for the banksters to find a place to hide!!
Oh yes...ban all short selling of financials forever...
This will be a hoot.
Amazing. It just makes you want to go out and buy Italian banks, knowing that they are fully protected from evil short sellers.
Tyler, where is that article from that Hungarian numnuts? :-) From Unicredit Securities? :-)
Hungary Dude:
I hear that the Hungarian government plans to swap out FX loans into HUF loans. You know anything about the likelihood of this happening?
1. put finger on mouse scroll wheel.
2. pull finger toward you
Don't fall for the "pull my finger" trick!
extend your arm, extend your middle finger...
http://www.youtube.com/watch?v=QPf51_mPONM
Their hope is that The Bears will be slaughtered by The Bulls(hit).
They shouldnt be banning shorts, they should be offering shorts free trades, as theyre the only thing between long holders and a price of -0-.
No one left to short squeeze now....wow brilliant.
Exactly, great way to create a void. This will only cause the stocks to plummet faster. This slow motion train wreck seems to be picking up steam.
You people keep discussing naked shorts, which seems like a contradiction in terms. How can they be naked if they are wearing shorts? If they are naked, I agree that someone ought to be offering them shorts for free. But the thing between long holders . . . well, that should not be left for someone to squeeze or even hold. Give the guy some shorts for goodnesssake.
nobody shorts in local markets..it all happens in Germany where there are no short selling rules. Coming soon to NYSE/Euronext when the Borse buys it.
You cant short sell the short sellers! Their rules do not apply to them!
Thank God...a solution!
In fact, it's so brilliant, I'm going to employ the same principal technique with my family. No more food consumption...I can now save tons of money on grocery bills to use on future ramped up medical expenses for malnurishment.
hmmm, on a side note, this obviously doesn't cross over into the PM space as Blythe has her "FU Silver Short" takedown back to the 29's...whore.
then again, I should thank her for another physical buying opportunity.
Grandine Vittoria... (cough * sieg heil * cough)
Considering that only 2 or 3% of the public do short stocks, that's of little concern as "a right". It is of concern just because the existence of shorts is a variable that is already part of market balance and banning it actually removes instant to instnt liquidity (particulary at those moments when short sellers would be looking to cover up and then being the first ones to step in and buy the falling knifes ).
To remove that in times when market is in such shape does not soound to me as an attempt to save it.
By the way, does anyone could kindly explain how to post a picture? There's an HTML editor but it does not seem to work when using the code
<img src="somedomain/someimage.jpg">
You have to have an upgraded account, which you get by making quality posts judged by the Tylers. Till then, no pics. And even if you get an upgraded account you can lose it if you post too much crap, like a charts of stocks that happened to go up that day. (see RoboTrader.)
Thank you SMG,
I was trying to point to an image at Bruce Krasting article, and couldn't do it.
BTW I totally agree with this criterion. :D
Soo, what your telling me is that if I purchace the "up graded account" My posts content can actually improve also? Magical!
Nessuna Offerta, puttane!!!
So the emperor now admits he has no clothes?
Oh my, the limbo!
Surely this will inform the current (and very sad) holders of Euro Bank stocks that there will be no short covering rally to help them out of their position with less of a loss than they are currently suffering. So what to do? Sell and just get out...which will push the prices lower.
Yeah...unintended consequences can be a bitch huh?
"Put all your money in dollars because at least they're backed by the US government, unlike silver and gold which are not backed by anything." -Blonde on TV.
This was 30 minutes ago! Shouldn't the market be rallying hard by now?
Is everyone waiting for Steve Liesman to report it so they know it to be true?!
C'mon Steve, lunch time is over. Give us our daily market-maker already!
Sheesh.
You guys are mistranslating what they said. This is about banning midget slavery -- for some reason they translated it as short selling. Go figure.
Naked midget slavery is apparently worse. Better the midgets should wear short shorts to the auction block.
No tripple shorts either? but then a short ban is in effect so I guess no shiorts at all?
I'm confused? I would just rater see them auctioned in a Borat swim suit or Lederhosen would due I guess.
If you aren't allowed to bet that things will collapse, then we will all be magicaly protected. Shhhhh. Go to sleep little ones.
Even if there is a fire!
Europe can't buy more then 600$ worth of gold or silver. And now they can't short the financials. Might as well buy those new euro bonds and join the ponzi scheme.
This MUST raise the much talked and, ah, so dear to the europonzi politicians, CONfidence. They are screaming OUR BANKS ARE FINE, WHY DON'T YOU BELIEVE US!
I'll say bombs away.
Italy's market regulator CONSOB. Really? Sounds more like CONjob to me.
all will be fine, when they announce:
"The NYSE is open for trading Monday through Friday between 9:30:00:000 am – 9:30:00:001 am ET, with the exception of holidays declared by the Exchange in advance."
Luckily you can still sell the indices, which in Europe are largely comprised of financial stocks. (If you're really picky, you can sell the indices and buy appropriate amounts of the non-financials like Volkswagen, though that's probably a short as well.)
Maybe they have short selled and are going to throw their own stocks now onto the market.
Who know?
Ban short selling! Ban selling at all! Ban making money! Ban pessimists, freemasons, Jews, Gypsies, and all unter-menschen! Third Reich, sorry, European Union, bitchez!
Where is the V-shape rally?
ehrrmm ... wait ... let´s see ... yeah ... it´s a an U-shape ...
yeah ... U-shape rally ... tomorrow !
But we can short Goldman.
More bans on short selling. God forbid we should solve the problem, let's just outlaw the symptoms.
"All your base are belonging to us!"
The Euro bond will be enacted in due time. I've been waiting two years for this event to occur. It kind of surprises me how long it took them this long to mention the option of the Euro bond. The Chinese and Japanese want to divest out of USD denominated bonds as possible (see: http://www.cnsnews.com/news/article/china-has-divested-97-percent-its-ho...) and you can see they've been decreasing their holdings of bonds since 2009 (see: http://www.dailymail.co.uk/news/article-1394315/China-unloads-97-cent-sh...). The Chinese have been increasing their holdings of Euro based debt from the PIIGS notably from Greece because of the financial backing of France and Germany (see: http://www.theaustralian.com.au/business-old/news/premier-wen-backs-euro...).
Of course now you see a quick move by the Chinese to move to US bond purchases (see: http://www.washingtonpost.com/wp-dyn/content/article/2010/05/17/AR201005...) while the Euro-zone malay concedes to a Euro bond but as soon as Euro bonds are available you can guarantee they'll flood back to Euro-zone bonds (Euro bond).
So only people outside Italy can short Italian Financials. That is really going to catch on.
If I was a socialist pig, the most effective way to enhance my power base would be to trigger economic events that place more people into poverty, then blame the rich for "not contributing", and the proceed to tax the bejeezes out of them. My grip on power would be secure.
If ever there was a signal to sell any longs in financials, banning shorts certainly is a bell being rung very loud and clear
" This is bullish, right cramer?"
OT: Real unemployment rate to hit 26 percent in 2012 (Greece)
http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_28/09/2011_408391
Demonstrators take to streets to protest against home seizures (Spain)http://www.elpais.com/articulo/english/Demonstrators/take/to/streets/to/...
AMF just announced the shorting ban is extended till November 11th
Shorting = Wire Hangers = Evil
http://www.youtube.com/watch?v=XOILKHmZBwc
No ban on regular old fashioned SELLING though..liquidation of stock.
So now stocks in Italy and Spain go up, and only up, never no down, ever?? Gotta get an overseas markets app approval on Scottrade, buy me some Ferrari, yeah!/sarc
This probably isn't the right forum or thread but I wish to lodge a formal complaint against the animal cracker people for putting 10 animal crackers in my one dollar mini-bag. I know it's the end of the world...but ten frigging animal crackers for a buck?
Inflation...it's good for your health.
Were the Tigers and Monkies making Loop D Loops? If not, your surley were swindled.
Can't stop what's coming.
Dumb ass Europeans...no offense.
first the SNB puts a floor under the Swisse, so you sell the EUR. These idiots extend shortselling ban - you just create volatility and nice fat liquidation trades.
The Euro financial authorities have 100% lost the plot.