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Germany Tries to save the day AGAIN


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#1 InvestingFreak

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Posted 18 May 2010 - 09:24 PM

HMMM Where oh Where Have I heard this story before... Oh Yeahh.. September 20, 2008 German regulator bans short-selling in financial stocks

Germany on Saturday halted short-selling in financial shares, when investors borrow company stock to sell it, following the example of Britain and the United States. The ban affects 11 shares including those of AAreal Bank, Allianz, AMB Generali, Commerzbank, Deutsche Bank, Deutsche Boerse, Deutsche Postbank, Hannover Re, Hypo Real Estate, MLP and Munich Re. BaFin, said short sales were banned with immediate effect until the end of the year, underscoring that they could lead to huge losses in the current global financial turmoil.

Roll Back to May 18, 2010....

Allianz SE, Deutsche Bank AG, Commerzbank AG, Deutsche Boerse AG, Deutsche Postbank AG, Muenchener Rueckversicherungs AG, Hannover Rueckversicherungs AG, Generali Deutschland Holding AG, MLP AG and Aareal Bank AG are covered by the short-selling ban. “Massive” short-selling was leading to excessive price movements which “could endanger the stability of the entire financial system,” BaFin said in the statement.

I created a table of the financial stocks Germany is protecting and more on this post but formatting here might not permit it to show correctly.
so here's the link to the full article http://investingfrea...-part-2-begins/

Now lets cover those shorts ;)
"I hate weekends because there is no stock market." -Investing Freak

#2 DrSP

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Posted 18 May 2010 - 09:29 PM

If a central bank can induce a short squeeze, then it could be VW II again. Could be in either direction. No telling here. :)
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#3 InvestingFreak

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Posted 18 May 2010 - 09:45 PM

but if shorters are no longer there who will drive the market up besides short squeezes on good news? lol
"I hate weekends because there is no stock market." -Investing Freak

#4 DrSP

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Posted 18 May 2010 - 09:58 PM

but if shorters are no longer there who will drive the market up besides short squeezes on good news? lol


George, I am sure there are enough shorts by the end of the day today.
You could be a billionaire or an industrial worker or a teacher or a moderator of a forum - Hold a good conscience because that is what matters.

#5 dasein

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Posted 19 May 2010 - 07:33 PM

vat is VolksWagen II? their Trabi?

Edited by dasein, 19 May 2010 - 07:34 PM.

best,
klh

#6 InvestingFreak

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Posted 19 May 2010 - 09:22 PM

haha!

well well well.
my German watch list on day 1 is down 2.83% on average for the 9 banks i was able to track that are being protected.
where is the money going since no shorts are allowed?

oh dont worry I got the answer.

Germany's 'desperate' short ban triggers capital flight to Switzerland
A year ago, Germany's financial regulator BaFin warned that the toxic debts of the country's banks would blow up "like a grenade" once hidden losses from the credit crisis caught up with them.

http://www.telegraph...witzerland.html
"I hate weekends because there is no stock market." -Investing Freak