Contagion.

That’s the best word to describe the European markets this morning, as first Italy, and now Spain have announced short selling bans.
Spain’s ban applies to ALL STOCKS, as well as the OTC derivatives market, and will last 3 months at a minimum.

Spanish Short Selling Ban

  1. This contagion reminds me of the article published here about a 10 day ago  When hubs and nodes shut down there is a point of no return.  Banning short selling won’t accomplish much at all. The banks need $990 billion to fixed their toxic balance sheets and that would buy less than a year.  Willie was right. The Germans can’t and won’t bail out this country  It will fail and take the rest of the southern Euro zone with it. Greece is just days away from running out of money.  The way they fail will presage Spain’s failure and it will be catastrophic.  Our banks will be hit very very hard by Greece derivatives. Spain’s CDS will cripple us. Like you said Derentu, this is like seppuku.  The central banks and governments continue to stab themselves, thinking this will fix their problems and all they do is accelerate their demise

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