RED ALERT:- Germany to ban naked short selling @ midnight tonight!

[Mega]

http://www.zerohedge.com/article/ger...lling-midnight
Where the HELL is EJ when you need him?
Mike

[jiimbergin]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

Thanks for posting this Mike.
jim

[Mega]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

It gets better Jim!
http://www.zerohedge.com/article/do-...naked-shorting
Mike

[pescamaaan]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

the markets are not liking this....down 100bp and falling on the news.

[ViC78]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

Hasn't naked short selling always been illegal? (at least in the US, it was). Is this "new" news or a case of "We will ensure that rules are followed this time, we really mean it." ?

[globaleconomicollaps]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

http://www.zerohedge.com/article/ger...t-hedge-fx-ris

The latest bombshell: German Finance Ministry now saying it will likely Ban EUR derivatives that don't hedge against FX risk. And good luck quantifying what FX risk is legally allowed to be hedged. Look for the EURUSD market not to plunge, but to simply shut down as a result of this. Europe is about to isolate itself from capital markets entirely.

[chr5648]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

Thank you germans for the mini dow drop



Not to mention the eurusd, eurjpy, and gold, too bad ballacks gonna miss the world cup:p

[Chomsky]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

Denninger's take:

http://market-ticker.denninger.net/a...ad-Enough.html

If you thought the German government was going to be a lapdog for Sarcozy, or worse, was going to fellate Brussels and the ECB, you got a rude shock today.

It appears that the German Government has just plain had enough of the crap that the banksters have tried to pull, and has decided to do what Barack Obama should have done in early 2009.

That is:
No more naked credit crap, especially against sovereigns but not only against sovereigns. No insurable interest, no CDS - period.

Naked shorting will now be actually stopped in 10 leading financial institutions.

Germany has had it with naked shorting of Gold, and specifically noted bank manipulation of gold prices via naked shorts beyond intent or ability to deliver.

Germany has also said that they're not going to permit Euro derivatives that are not a "bonafide" FX hedge. That is, no more naked bets on Euro movements either.

Hedge funds are going to be regulated, position size limits mandated and enforced, reporting enhanced and a transaction tax is coming.

It's about damn time.

Oh, and it appears that instead of telling all the banksters what they were going to do and "getting permission" first, or even discussing it with other governments, the German Government did what all governments should do - make up your mind and then do it without giving a good damn whether the banksters or other governments like it - and without giving them input into the decision or notice that it's coming.

The bid rigging, the game-playing and the rest are all a bunch of crap. I've been hollering about this now for more than three years and yet our government spends it's time fellating the bankers and their dogs instead of enforcing the law.

It is illegal to defraud people.

It is illegal to rig markets, including the massive bid-rigging that I wrote about this morning, the Jefferson County Alabama scam and dozens if not hundreds more - all committed, it is alleged (and in some cases proved) by the major banks.

It is illegal to short stocks with no intention or ability to deliver.

And it is illegal to bribe government officials, no matter how you accomplish it.

These are not "isolated incidents" or even a pattern of conduct - as the bid-rigging report this morning makes clear ripping people off has become an institutionalized practice and policy throughout the entire banking system.

Many said that the Germans were not "really" arm-twisted by Sarcozy and the French Banking interests a week or so back. I think we can put that to rest here and now, as it's pretty clear that the truth is something else entirely.

Now Barack, about your willingness to get up off your knees and kick these banksters in the nuts?

Better late than never.

[gnk]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

These exotic financial instruments are all bunk.

People making money on side bets, betting on things that they don't own. And it's not really just a bet, but insurance. They are insuring things they don't own - but without the restraints of insurance regulations... after all, we call them "swaps" not insurance.

Ever stop and think how all these people - hedge funds, banks, etc... earn their living? What productive contribution do they make for society? Theirs is a fictional world that costs the rest of us real money. It makes us need to work longer, harder, and enjoy life less.

If you're not contributing to the well being of society, you're extracting from everyone else's well-being.

There's a difference between value add and rent seeking. Everyone should ask themselves, how do you earn your living?

[Adeptus]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

Denninger's take:
Germany has had it with naked shorting of Gold, and specifically noted bank manipulation of gold prices via naked shorts beyond intent or ability to deliver.
.

I only need to understand one thing out of all this. How will this affect the price of gold/silver in North America? Can somebody please enlighten me?

Is today the day we all go Jtabeb and drive to our dealer to back-up our trucks on gold/silver before everything goes to hell tomorrow?

Thanks!
Adeptus

[charliebrown]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

I'm really surprised that the markets are holding together so well. Why aren't we seeing a major collapse of stocks?
I'm sure there are billions of dollars, in euro denomited contracts. A lot of these contracts need to be ripped up now.

How many bulldozers is cat going to sell into the eu now that they cost 25% more than just a few months ago.
How many of these silly credit, interest, fx swaps are out there. Which counterparties are getting killled.
What about those naked short sellers, can they unwind their short postions in an orderly fashion?
Are interest rates in the EU destined to sky rocket to compensate euro holders that they are in a falling currency?

Can the second largest currency in the world fall apart, and we only get a 10% correction?
This really should have all the making of Lehman 2. so a measly 1% drop in the S&P, and 2% drop in the EFA seems tame.

[loweyecue]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

Denninger's take:

http://market-ticker.denninger.net/a...ad-Enough.html

If you thought the German government was going to be a lapdog for Sarcozy, or worse, was going to fellate Brussels and the ECB, you got a rude shock today.

It appears that the German Government has just plain had enough of the crap that the banksters have tried to pull, and has decided to do what Barack Obama should have done in early 2009.

That is:
No more naked credit crap, especially against sovereigns but not only against sovereigns. No insurable interest, no CDS - period.

Naked shorting will now be actually stopped in 10 leading financial institutions.

Germany has had it with naked shorting of Gold, and specifically noted bank manipulation of gold prices via naked shorts beyond intent or ability to deliver.

Germany has also said that they're not going to permit Euro derivatives that are not a "bonafide" FX hedge. That is, no more naked bets on Euro movements either.

Hedge funds are going to be regulated, position size limits mandated and enforced, reporting enhanced and a transaction tax is coming.

It's about damn time.

Oh, and it appears that instead of telling all the banksters what they were going to do and "getting permission" first, or even discussing it with other governments, the German Government did what all governments should do - make up your mind and then do it without giving a good damn whether the banksters or other governments like it - and without giving them input into the decision or notice that it's coming.

The bid rigging, the game-playing and the rest are all a bunch of crap. I've been hollering about this now for more than three years and yet our government spends it's time fellating the bankers and their dogs instead of enforcing the law.

It is illegal to defraud people.

It is illegal to rig markets, including the massive bid-rigging that I wrote about this morning, the Jefferson County Alabama scam and dozens if not hundreds more - all committed, it is alleged (and in some cases proved) by the major banks.

It is illegal to short stocks with no intention or ability to deliver.

And it is illegal to bribe government officials, no matter how you accomplish it.

These are not "isolated incidents" or even a pattern of conduct - as the bid-rigging report this morning makes clear ripping people off has become an institutionalized practice and policy throughout the entire banking system.

Many said that the Germans were not "really" arm-twisted by Sarcozy and the French Banking interests a week or so back. I think we can put that to rest here and now, as it's pretty clear that the truth is something else entirely.

Now Barack, about your willingness to get up off your knees and kick these banksters in the nuts?

Better late than never.

Love it, will root for the Germans this world cup! Now lets see if other countries can grow a pair.

[Mn_Mark]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

Ever stop and think how all these people - hedge funds, banks, etc... earn their living? What productive contribution do they make for society? Theirs is a fictional world that costs the rest of us real money. It makes us need to work longer, harder, and enjoy life less.

They aren't robbing people. There are people willing to buy what they're selling because they think it's worth the money. You may not; you don't have to buy what they're selling.

The problem is not what the bankers do. The problem is the federal government making our tax money available to bail them out. That's the injustice here. I don't blame bankers for a second for trying to get the government to bail them out, and succeeding. You can't blame someone for trying to get free money. But you CAN blame the politicians and bureaucrats who give them the money.

Ah, but I can hear you replying: but they are so big now that if they fall, they will hurt a lot of innocent bystanders. Again, this is the fault of the government for providing guarantees like FDIC insurance and implicit bailout guarantees that lulled investors into a fall sense of security and enabled the banks to go on an epic reckless lending spree. Without the government in there generating moral hazard, these banks would have collapsed long ago when they were much smaller and when they would only take down people who had foolishly lent money to them.

This problem is the result of a Keynesian, government-can-take-the-risk-out-of-life-for-us mentality. It's not a problem of banker snake-oil salesman selling bad products...that has always occurred and always will and the remedy is "buyer beware".

[gnk]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

They aren't robbing people. There are people willing to buy what they're selling because they think it's worth the money. You may not; you don't have to buy what they're selling.

The problem is not what the bankers do. The problem is the federal government making our tax money available to bail them out. That's the injustice here. I don't blame bankers for a second for trying to get the government to bail them out, and succeeding. You can't blame someone for trying to get free money. But you CAN blame the politicians and bureaucrats who give them the money.

Ah, but I can hear you replying: but they are so big now that if they fall, they will hurt a lot of innocent bystanders. Again, this is the fault of the government for providing guarantees like FDIC insurance and implicit bailout guarantees that lulled investors into a fall sense of security and enabled the banks to go on an epic reckless lending spree. Without the government in there generating moral hazard, these banks would have collapsed long ago when they were much smaller and when they would only take down people who had foolishly lent money to them.

This problem is the result of a Keynesian, government-can-take-the-risk-out-of-life-for-us mentality. It's not a problem of banker snake-oil salesman selling bad products...that has always occurred and always will and the remedy is "buyer beware".

It's not just the government - it's the monetary system.

If we had a gold standard, they would not exist to the extent they do today. Fiat money is their lifeblood. Take that away, and most of them disappear.

Let the chips fall where they may. That's my attitude now. No more backstops, guarantees, free money..... let's see what type of economy we really have. But you know what else? There's no need for the gov't to change it's act. The ponzi debt-based monetary system we have is such that it will implode by itself.

[blazespinnaker]

Re: RED ALERT:- Germany to ban naked short selling @ midnight tonight!

Is this really a big deal? This is already done in the US and the CDS short selling doesn't matter because the majority of trading is done in London where the rules will not apply.