Short Sellers Banned in France, Italy, Ireland, Spain

Who rules the markets? Not short sellers says France, Spain, Italy and Belgium. They just banned short sales wreaking havoc on their markets, for some banks. Echos of 2008 now abound. In particular, short sellers are focused in on Société Générale, which dropped 20%, betting it might implode.

France, Spain, Italy and Belgium will impose bans on short-selling from today to stabilize markets after European banks including Societe Generale SA hit their lowest level since the credit crisis.

While short-selling can be a valid trading strategy, when used in combination with spreading false market rumors this is clearly abusive. -- European Securities and Markets Authority

Perhaps the short selling ban impending move had much more to do with today's stock market pop up than erroneous claims that a little tick down in initial unemployment claims caused a 423 point Dow increase.

Zerohedge, cynically notes the ban on some banks can be easily circumvents through options puts and calls.

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.

Here Comes De Hedge Funds

The CNBC screen flashed with massive losses of hedge funds. 18% down, 14% down, 20% down.....

It appears Dr. Doom is batting 1000 for he just predicted the hedge funds would be next to collapse.

While they are blaming a ban on short selling, one foreboding issue pops up:

Some pension funds and endowments that have relied on hedge funds for a stable, higher-than-average source of investment returns have been watching the unfolding trouble with alarm

The Independent has the scoop:

Redemptions means people are saying give me my money, I want out!

Don't Like What's Happening? Change the Rules! - SEC BANS Short Selling on 799 Stocks

The U.S. Securities and Exchange Commission took what it called "emergency action" Friday and temporarily banned investors from short-selling 799 financial companies.

The temporary ban, aimed at helping restore falling stock prices that have shattered confidence in the financial markets, takes effect immediately

I wake up this morning and this is what I find, the entire rules of the game changed overnight. SEC bans short selling

It's one thing to ban naked shorts but to just change a major trading method on certain stocks overnight?

I thought these guys loved free markets? Comrade, not when they are losing money on their stocks?