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Originally posted by mossme89
reply to post by Shenon
Hmm... But I would think that would be a good thing, because it would stop people from shorting & driving the market even lower.
The 15 day short selling ban (which appears to include all shorts, not just naked ones), includes the following names: April Group, Axa, BNP Paribas, CIC, CNP Assurances, Crédit Agricole, Euler Hermès, Natixis, Paris Ré, Scor, Société Générale. We wonder whether the French AMF is also aware that one can just as easily create identical synthetic shorts by buying puts and selling calls on the names in question or maybe nobody in the French regulatory body has graduated beyond cash products and into derivatives. And the kicker, 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.
When Bernanke speaks at the Fed's Jackson Hole, Wyo., meeting Aug. 26, he could conceivably launch a real shock-and-awe stimulus program. If you go back a year, when Bernanke first announced QE2 at Jackson Hole, sources tell me that the original debate over the quantity of bond purchases had a $2 trillion balance-sheet expansion on the table. Inflation hawks beat that number back to $600 billion. But now the rest of that $2 trillion -- or $1.4 trillion -- could conceivably be on the table for a new QE3 announcement by the Fed.
The International Monetary Fund issued a report in August 2010 saying that the German government's unilateral ban on some kinds of naked shorting succeeded only in impeding the markets. It said the ban “did relatively little to support the targeted institutions’ underlying stock prices, while liquidity dropped and volatility rose substantially.” The IMF said there was no strong evidence that stock prices fell because of shorting.[63]
The euro crisis had its origin in German Chancellor Angela Merkel’s decision, taken in the aftermath of Lehman Brothers’ default in September 2008, that the guarantee against further defaults should come not from the European Union, but from each country separately. And it was German procrastination that aggravated the Greek crisis and caused the contagion that turned it into an existential crisis for Europe.
WASHINGTON (MarketWatch.com) — A gauge of consumer sentiment tumbled in August to the lowest level since May 1980, according to a report released Friday, as a volatile stock market, weak employment and worries about federal debt took their toll.
Consumer sentiment dropped to 54.9 from 63.7 in July, according to preliminary University of Michigan/Thomson Reuters index released Friday