Short Sellers Banned in France, Italy, Ireland, Spain

Who rules the markets? Not short sellers says France, Spain, Italy and Belgium. They just banned short sales wreaking havoc on their markets, for some banks. Echos of 2008 now abound. In particular, short sellers are focused in on Société Générale, which dropped 20%, betting it might implode.

France, Spain, Italy and Belgium will impose bans on short-selling from today to stabilize markets after European banks including Societe Generale SA hit their lowest level since the credit crisis.

While short-selling can be a valid trading strategy, when used in combination with spreading false market rumors this is clearly abusive. -- European Securities and Markets Authority

Perhaps the short selling ban impending move had much more to do with today's stock market pop up than erroneous claims that a little tick down in initial unemployment claims caused a 423 point Dow increase.

Zerohedge, cynically notes the ban on some banks can be easily circumvents through options puts and calls.

August 26 just went supernova, as this is the day the short selling ban expires, the BEA reports the second, sub 1% GDP revision, and Bernanke presents his 2011 Jackson Hole keynote speech.

A tale of two continents - Europe Helps Workers, U.S. Squeezes Workers

From Open Left, one commentator put it succinctly:

A tale of two continents
In Europe, state aid is contingent on the firms preserving jobs. In the US, state aid is contingent on the firms cutting their workers wages and benefits.

The story is about government expenditures being used for the benefit of it's citizens, their workers.


France unveiled a plan on Monday to give €6 billion ($7.8 billion) in low-interest loans to Renault SA and PSA Peugeot-Citroën in exchange for promises that they won't close factories in France or lay off workers for the duration of the loans. The government also will offer €500 million in loans to auto-sector firms with operations in France.