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Traders go short on Lloyds

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    Traders go short on Lloyds

    Traders have borrowed an estimated £1.5bn of shares, amounting to 50pc of the stock available to borrow, according to figures from Data Explorers. Dealers say some of the stock on loan has already been used to place "short positions", while other borrowed shares are being held in preparation to short the stock as soon as Lloyds announces its rights issue.

    More from Cyber-graph.

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    Would this have happened under Tories?

    #2
    It's all like watching a car crash in slow motion. Everyone is in a river in Egypt.
    Insanity: repeating the same actions, but expecting different results.
    threadeds website, and here's my blog.

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      #3
      Originally posted by AtW View Post
      Traders have borrowed an estimated £1.5bn of shares, amounting to 50pc of the stock available to borrow, according to figures from Data Explorers. Dealers say some of the stock on loan has already been used to place "short positions", while other borrowed shares are being held in preparation to short the stock as soon as Lloyds announces its rights issue.

      More from Cyber-graph.

      ----------------

      Would this have happened under Tories?
      I thought it had been established the short selling didn't cause the problems?

      That's how short selling works, you borrow a share with the view of buying them to give back at a lower price, and make some money in the process.
      Hang on - there is actually a place called Cheddar?? - cailin maith

      Any forum is a collection of assorted weirdos, cranks and pervs - Board Game Geek

      That will be a simply fab time to catch up for a beer. - Tay

      Have you ever seen somebody lick the chutney spoon in an Indian Restaurant and put it back ? - Cyberghoul

      Comment


        #4
        Originally posted by snaw View Post
        I thought it had been established the short selling didn't cause the problems?

        That's how short selling works, you borrow a share with the view of buying them to give back at a lower price, and make some money in the process.
        There are always ways of getting round short selling bans.

        Could short the FTSE future, and buy back the shares you dont want to short. Very expensive transaction costs for us retail traders, but the banks can do it cheaply.
        'Orwell's 1984 was supposed to be a warning, not an instruction manual'. -
        Nick Pickles, director of Big Brother Watch.

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          #5
          Originally posted by snaw View Post
          That's how short selling works, you borrow a share with the view of buying them to give back at a lower price, and make some money in the process.
          What's the economic benefit of such action (making speculator make lots of unearned income does not count as one)?

          The idea of shares is to provide means of getting investment - inherently this should be long term decision: if you are not prepared to hold shares for 2-3 years then don't buy them.

          Consequently any short term ownership of shares should be discouraged because if you can't afford to put in money for a few years, then you should not be getting into it in the first place.

          Therefore 110% tax is necessary on any short term gains, that is - whoever gets any gains will have to pay more than they gained in the first place. Very long jail sentences for those who try to work it around.

          Naturally this will result in 90% of investment bankers and supporting staff fired - good riddance I say, just right now I could not get sandwich and few toasts from local canteen because of local banker's conference in the building where we have office

          Comment


            #6
            Atw, you really have no idea how the dynamics of markets work.
            How did this happen? Who's to blame? Well certainly there are those more responsible than others, and they will be held accountable, but again truth be told, if you're looking for the guilty, you need only look into a mirror.

            Follow me on Twitter - LinkedIn Profile - The HAB blog - New Blog: Mad Cameron
            Xeno points: +5 - Asperger rating: 36 - Paranoid Schizophrenic rating: 44%

            "We hang the petty thieves and appoint the great ones to high office" - Aesop

            Comment


              #7
              Originally posted by HairyArsedBloke View Post
              Atw, you really have no idea how the dynamics of markets work.
              He never has. Something went back wrong in that economics 101 class from Polytechnic University of Siberia.
              Hang on - there is actually a place called Cheddar?? - cailin maith

              Any forum is a collection of assorted weirdos, cranks and pervs - Board Game Geek

              That will be a simply fab time to catch up for a beer. - Tay

              Have you ever seen somebody lick the chutney spoon in an Indian Restaurant and put it back ? - Cyberghoul

              Comment


                #8
                Originally posted by HairyArsedBloke View Post
                Atw, you really have no idea how the dynamics of markets work.
                I know it pretty well.

                I didn't get my toasts - sack all the bankers I say!

                Comment


                  #9
                  Originally posted by AtW View Post
                  What's the economic benefit of such action (making speculator make lots of unearned income does not count as one)?

                  The idea of shares is to provide means of getting investment - inherently this should be long term decision: if you are not prepared to hold shares for 2-3 years then don't buy them.

                  Consequently any short term ownership of shares should be discouraged because if you can't afford to put in money for a few years, then you should not be getting into it in the first place.

                  Therefore 110% tax is necessary on any short term gains, that is - whoever gets any gains will have to pay more than they gained in the first place. Very long jail sentences for those who try to work it around.

                  Naturally this will result in 90% of investment bankers and supporting staff fired - good riddance I say, just right now I could not get sandwich and few toasts from local canteen because of local banker's conference in the building where we have office
                  Here's one for ya, from the SEC chief who introduced the short selling ban for 3 weeks::

                  http://www.reuters.com/article/ousiv...4BU3FL20081231

                  The SEC's office of economic analysis is still evaluating data from the temporary ban on short-selling. Preliminary findings point to several unintended market consequences and side effects caused by the ban, he said.

                  "While the actual effects of this temporary action will not be fully understood for many more months, if not years, knowing what we know now, I believe on balance the commission would not do it again," Cox told Reuters in a telephone interview from the SEC's Los Angeles office late on Tuesday. "The costs appear to outweigh the benefits."

                  Less liquidity in the markets was one of the unintended consequences, experts have said.
                  Hang on - there is actually a place called Cheddar?? - cailin maith

                  Any forum is a collection of assorted weirdos, cranks and pervs - Board Game Geek

                  That will be a simply fab time to catch up for a beer. - Tay

                  Have you ever seen somebody lick the chutney spoon in an Indian Restaurant and put it back ? - Cyberghoul

                  Comment


                    #10
                    How about you cheer us all up with some BIG SKA NEWS?

                    Comment

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