Breaking news: Italy and Spain ban short selling of stocks as markets dive

Panic is gripping the Eurozone as Italy and Spain’s financial markets are on the verge of collapse.

Italy announced it will ban short selling of stocks on it’s exchange for a week as Spain bans short selling for 3 months.

In a short sale, investors sell stock that they do not own, betting that they can buy it back at a lower price. The investor seeks a profit by betting that the price of certain shares will fall.

Short-selling of shares has been blamed for driving down markets during the financial crisis and several European regulators have in the past imposed temporary bans on the practice. Italy in February let expire a ban that had been imposed the previous summer.

So called news sites will claim things like, this is because “…the sovereign debt and banking crisis may be worse than expected.”

Let’s be clear about this. The bankers have engineered this scenario with their fake debt made up from derivatives and other fraudulent leveraged financial instruments so they can later come in as our ‘saviours’ to fix the problem and centralise power even more into fewer hands.

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Financial markets in Italy aren’t the only thing taking a dive.

2 comments

  1. A totally useless measure. Financial markets and investors now know the truth about Spain and Italy. These two countries are ruined and bankrupted as Greece. So is United Kingdom by the way. Nobody talks about United Kingdom about to go bust as Spain. Italy. In reality UK will in a couple of days join the PIIGS. UK belong to the PIIGS also with 1000% GDP of debt. NEXT UK.

  2. What you’ve described is NAKED short selling, which of course should be illegal, because it is counterfeiting & therefore fraud. Proper short selling has the security borrowed from a third party. What Italy & Spain have just done is price fixing and price propaganda. It will not stop people selling their shares outright, which is what I would do. Sure it’d take me 3 day to be sure as to what price I got but actions like this make it questionable as to whether there’s any value to be had there anyway.

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