Jump to content
House Price Crash Forum
grasshopper

Free Market - Only On The Way Up

Recommended Posts

It appears that the Federal reserve is happy with free markets when they are rising but when they go down ....

see Mish's comments below

http://globaleconomicanalysis.blogspot.com/

SEC Restricts Shorting 19 Financial Stocks

Earlier today I reported SEC Panic - Shorting Curbs Placed on GSE Stocks.

Big brother has now decided to step in and force the price of all financial stocks up with this SEC short sale order.

The U.S. Securities and Exchange Commission issued an emergency order on Tuesday placing restrictions on the short selling of shares of certain major financial firms.

The SEC's order will require that anyone effecting a short sale in these securities arrange beforehand to borrow the securities and deliver them at settlement.

The order takes effect Monday, July 21, and will terminate at the end of July 29. The SEC said the order may be extended, but for no more than 30 calendar days in total duration.

The agency identified the following securities affected by its order:

BNP Paribas Securities Corp

Bank of America Corp

Barclays PLC

Citigroup Inc

Credit Suisse Group

Daiwa Securities Group Inc

Deutsche Bank Group AG

Allianz SE

Goldman Sachs Group Inc

Royal Bank ADS

HSBC Holdings Plc ADS

JPMorgan Chase & Co

Lehman Brothers Holdings Inc

Merrill Lynch & Co Inc

Mizuho Financial Group Inc

Morgan Stanley

UBS AG

Freddie Mac

Fannie Mae

Inquiring minds will want to consider this snip from the Bloomberg article Lawmakers Balk at Paulson's Fannie, Freddie Plan.

Bernanke told lawmakers it's "important" for Fannie Mae and Freddie Mac bonds and stocks to rise so they can keep raising capital and aid the mortgage market. Paulson said the two companies are "essential" because they represent the only "functioning" part of the home loan market. The firms own or guarantee about half of the $12 trillion in U.S. mortgages.

Share this post


Link to post
Share on other sites

So do we take it those are the financial institutions on their "to be saved" list?

It's no wonder the banking sector has bounced.

All these short sale restrictions are going to do is create a vacuum. Once the shorts are driven out these shares will plunge. And who wants to buy a bond or provide capital knowing or even thinking share prices were artificially inflated.
Edited by Red Kharma

Share this post


Link to post
Share on other sites

they really are going to try everything possible to make this possible shower a torrential thunderstorm aren't they?

it could all be over in maybe 5 years, yet they are happy to drag it over 20.

Share this post


Link to post
Share on other sites
It doesn't read to me as they've outlawed shorting, merely naked shorting.

That's correct. Anyone that can arrange a borrow can still go short. Since these are all big cap highly liquid stocks, I can't imagine that they'll be on anyone's hard to borrow list either. I assume the idea is to stop someone making a massive short sale only to cover it on the same trading day at a profit - this removing the need to ever borrow the thing to start with.

Share this post


Link to post
Share on other sites

Funny how "Socialism" is bailing out the banks, and not the unfortunate, maybe unlucky,

or maybe unwise individual who falls on hard times.

Well, it's naked capitalism for us all then? Except Banks...

Share this post


Link to post
Share on other sites

Scary thing is, the rise on the Dow and the FTSE, I wonder how many "SPECULATIVE SHORTERS" have been closing thier posistions before the SEC come in.. LOTS me thinks.

It will buck the trend, but just like every other measure the FED have put in place, it will not stop it. Thier is way too much debt and "RISK HAS BEEN REPRICED"

On a more personal note, I am betting on a big FAT rally for the next 2 weeks, to wrong foot the shorters, then it will be business as usual, 5200 on the FTSE looks masively over sold currently... for now... until you peal back the detail.

Edited by Yoss

Share this post


Link to post
Share on other sites

Didn't you know losing money was politically very unpopular, where as making money is very popular.

Clearly the system is working when money is being made, when it's losing money it's clearly broken and needs fixing. There is something wrong as it's losing money so now the policy makers are fixing it to stop it from losing money.

It's quite simply really.

Share this post


Link to post
Share on other sites

Dow up 192 or there abouts, Bloomberg full of bulls.

Recovery in full flow now. :blink:

What changed exactly over the past few days?

Next house prices will be rising again :o

Edit, Google down 8-10% in after hours trading after poor click through figures.

Edited by Ted

Share this post


Link to post
Share on other sites

:lol::lol::lol:

Love you title. But then the truth is only ever evident during times of stress. The rest of the time it is smoke and mirrors and righteous indignation if you dare to speak the name of the beast.

Share this post


Link to post
Share on other sites

BNP Paribas Securities Corp

Bank of America Corp

Barclays PLC

Citigroup Inc

Credit Suisse Group

Daiwa Securities Group Inc

Deutsche Bank Group AG

Allianz SE

Goldman Sachs Group Inc #

Royal Bank ADS

HSBC Holdings Plc ADS

JPMorgan Chase & Co

Lehman Brothers Holdings Inc

Merrill Lynch & Co Inc

Mizuho Financial Group Inc

Morgan Stanley

UBS AG

Freddie Mac

Fannie Mae

i have a big issue, why these banks? are they all going to report falls? is this a way to stop people from shorting and making a profit on the very banks that have made the profits? what really sticks out is GS in this group. or is this really to protect fred and fannie. What is clear this is another short term fix, and i guess that they will extend it by 30 days.

Share this post


Link to post
Share on other sites
BNP Paribas Securities Corp

Bank of America Corp

Barclays PLC

Citigroup Inc

Credit Suisse Group

Daiwa Securities Group Inc

Deutsche Bank Group AG

Allianz SE

Goldman Sachs Group Inc #

Royal Bank ADS

HSBC Holdings Plc ADS

JPMorgan Chase & Co

Lehman Brothers Holdings Inc

Merrill Lynch & Co Inc

Mizuho Financial Group Inc

Morgan Stanley

UBS AG

Freddie Mac

Fannie Mae

i have a big issue, why these banks? are they all going to report falls? is this a way to stop people from shorting and making a profit on the very banks that have made the profits? what really sticks out is GS in this group. or is this really to protect fred and fannie. What is clear this is another short term fix, and i guess that they will extend it by 30 days.

Presumably if you're an engineering/electronics/mining company then it's quite all right to see your shareholders' money stolen by these naked short crooks?

Follow the Easter Bunny down the rabbit hole:

http://www.thesanitycheck.com/

http://www.deepcapture.com/

Share this post


Link to post
Share on other sites

"And your name is"?

"Hbos"

"Let me see....H,H,H....er...nope...can't find you.....who's your friend?"

"Oh that's Lloyds"

"Let me have another look.....nnnnope.....can't find her either"

"But Alistair told me my we were on the list"

"Sorry love, but you know how it is"

"But but but......pleeeeease can we come in"

"Sorry - But if you're names not on the list, you're not coming in"

Share this post


Link to post
Share on other sites
i have a big issue, why these banks?

Because they're all listed on US exchanges (or they have an ADR which is), are over some size or other and have passed some threshold of volatility recently is the explanation I heard. The first is definitely true, the second is probably true and the third is at least plausible.

Share this post


Link to post
Share on other sites

Personally if the FED was telling me not to short them I would be doing it ASAP, as there is obviously something rotten in the state of Wall Street.

Also if I had holdings in any of them, I would be getting rid. Since when do sound businesses need protecting from their shareholders?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.