Reply to: Krauts ban speckulants.

[suityou01]

Can anyone explain to me why naked short selling is a good thing?

I watched a US Senate debate on the topic a couple of years ago (I must have been in a hotel somewhere in Europe and the financial channels were the only ones in English), they were very knowledgeable on the topic and all agreed that it was a bad thing and succeeded in convincing me while they were at it.

I think normal short-selling is OK but if people can sell stuff that does not exist, on a regulated exchange, does it not call all the trading on that exchange into question?


EDIT. OK, I now realise that when trading stocks and shares there is the delivery of a physical thing but this is not the case with Credit Default Swaps, and I don't think I want to know any more.

Nearly, you just described a warrant on a futures market. A share is not a physical thing.

[BlasterBates]

This isn't really about financial markets. The German government is well aware it won't make a blind bit of difference. They just need to do this so they can come in with some swingeing budget cuts. If they hadn't done this there would be no way they could cut their budget. Just takes the wind out of the sails of the opposition - the "Small man" bailing out the "big banks".

[AtW]

Can anyone explain to me why naked short selling is a good thing?

It's only good thing for a handful of people who can make lots of money out of pockets of other proper long term investors.

[Scary]

How come Brown didn't take us into the Euro? His legacy is blemished.

The one good thing he did. (Well, didn't do.)

What naked short selling is for: http://www.deepcapture.com/wp-conten...f-dendreon.pdf

[Gonzo]

Can anyone explain to me why naked short selling is a good thing?

I watched a US Senate debate on the topic a couple of years ago (I must have been in a hotel somewhere in Europe and the financial channels were the only ones in English), they were very knowledgeable on the topic and all agreed that it was a bad thing and succeeded in convincing me while they were at it.

I think normal short-selling is OK but if people can sell stuff that does not exist, on a regulated exchange, does it not call all the trading on that exchange into question?


EDIT. OK, I now realise that when trading stocks and shares there is the delivery of a physical thing but this is not the case with Credit Default Swaps, and I don't think I want to know any more.

[AtW]

Do you want fries with that?

I am not suprised you say that given your daily occupancy

[HairyArsedBloke]

Part of me thinks that this is a crafty way of raising interest rates (to combat inflation) though the eurozone without too many people clocking it. This action is going to mean there is has to be an extra risk premium on German debt and since the rest of the eurozone bonds are priced on top of that yields on them have to rise too.

Then on the other hand I'm thinking, "Nah, none of 'em are that smart. "

[shaunbhoy]

Good thing I already placed one big order with favourable fixed exchange rate

Do you want fries with that?

[AtW]

I started this one nearly two hours before yours. At the time I was surprised that there wasn't one already.

Good thing I already placed one big order with favourable fixed exchange rate

[HairyArsedBloke]

http://forums.contractoruk.com/gener...-shorting.html

Keep up there at the back ffs!

I started this one nearly two hours before yours. At the time I was surprised that there wasn't one already.

[AtW]

How come Brown didn't take us into the Euro? His legacy is blemished.

The City allegedly did not want that to happen.

HTH

[TimberWolf]

How come Brown didn't take us into the Euro? His legacy is blemished.

[Mich the Tester]

http://forums.contractoruk.com/gener...-shorting.html

Keep up there at the back ffs!

No, I prefer this one.

[AtW]

http://forums.contractoruk.com/gener...-shorting.html

Keep up there at the back ffs!

[cailin maith]

Much better thread title - well done HAB