Enough is enough : NO MORE SHORT SELLING!!
Spain and Italy, both who are prone to and are EASILY experiencing a 3% drop on any negative news, finally surrendered from the short selling pressures: They declared, no more short selling are allowed anymore!
So, do you think this measure will likely avert them from the coming crisis? I translate this as an admission of not being able to contain any pressures from the markets.
So far, before the U.S. market opens up, the 10-year government bonds fared well, only experiencing a few basis points hike. But today, this pattern lasted only for a few minutes, and suddenly the yields soared and high rocketed.
I think Spain’s and Italy’s 10-year government yields will easily top 7% and 8% respectively, given that the ECB said there are no more LTROs and the U.S. situation does not benefit from any further balance sheet expansion (those who do not agree with me with this point, please give me ANY evidences how any asset purchase programs worked to stem the unemployment rate!)






Comments
At best, a ban on short
At best, a ban on short selling merely delays what is imminent...The SEC did this in '08 and it didn't do a damn thing as you remember.
Here to learn and hopefully pass on some knowledge as well. SB if I helped.
No shorting = less buyers due
No shorting = less buyers due to less ability to hedge in various ways = price fall with less support = greater price collapse.
Win.
See my other WSO blog posts>
I always chuckle when I see a
I always chuckle when I see a ban on short selling. Will they never learn?
Never bet against a
Never bet against a government that can expropriate your position.
Work hard, play hard.
IlliniProgrammer: Never bet
Never bet against a government that can expropriate your position.
Yeah IP, this right here is super bullish for Spain and Italy. Considering how the day started I don't think too many people lost their shirts because of this. See you guys in the bond markets.
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