Spanish banks next
Oct 13th 2008, 7:00 am
#1
BE Enthusiast
Thread Starter
Joined: Feb 2006
Location: Isla Canela & Mountnessing
Posts: 703
Spanish banks next
According to todays Telegraph ( page B2) the Spanish government has not taken any steps to prevent "Shorting " positions on stocks & shares.
Large short positions have been taken against several Spanish banks
If the story is true the people concerned are betting over 100m euros each on several banks so it looks like they mean business, mite be time to hide your euros under the bed , if you have any left
Large short positions have been taken against several Spanish banks
If the story is true the people concerned are betting over 100m euros each on several banks so it looks like they mean business, mite be time to hide your euros under the bed , if you have any left
Oct 13th 2008, 8:37 am
#2
BE Forum Addict
Joined: Jan 2008
Location: The Charente - still smiling.
Posts: 2,624
Re: Spanish banks next
Whilst "shorting" clearly reflects the "shorter"'s view of the relative merits of an institution, the evidence suggests that it does nothing to change the ultimate value. Short selling of bank shares has been banned in London and New York for weeks. This hasn't stopped their shares collapsing. I would suggest that it is the fundamental weakness of a business that causes the collapse of its share price, not a few wide boys spotting that this particular emperor has no clothes on.
Oct 13th 2008, 11:29 am
#3
Retired and loving it!
Joined: Sep 2007
Location: Ontinyent - Valencia region (campo)
Posts: 5,160
Re: Spanish banks next
Whilst "shorting" clearly reflects the "shorter"'s view of the relative merits of an institution, the evidence suggests that it does nothing to change the ultimate value. Short selling of bank shares has been banned in London and New York for weeks. This hasn't stopped their shares collapsing. I would suggest that it is the fundamental weakness of a business that causes the collapse of its share price, not a few wide boys spotting that this particular emperor has no clothes on.
Oct 13th 2008, 12:02 pm
#4
BE Forum Addict
Joined: Jan 2008
Location: The Charente - still smiling.
Posts: 2,624
Re: Spanish banks next
Beg to differ with the first point. I have been in the markets for more years than I care to admit, and short selling has certainly not just been introduced. It is as old a technique as the hills and probably started the day after the first joint stock company was formed.
I completely agree that it has nothing to do with the collapse. The banks were running bad businesses, and it is a bit rich of them to criticise those who spotted it
I completely agree that it has nothing to do with the collapse. The banks were running bad businesses, and it is a bit rich of them to criticise those who spotted it
Oct 13th 2008, 12:07 pm
#5
Senior Moment
Joined: Jan 2006
Location: On the edge
Posts: 20,460
Re: Spanish banks next
Short selling is actually quite an important part of the markets and banning it can have a slightly detrimental effect.
Its been going on for generations and generations and its logical to think that its not much to do with the current crisis ... mainly caused by arrogant nobbers who seemed to think they knew exactly what they were doing.
I remember going to a meeting for a £50k business loan in RBS in the early 90's. We had a good business but needed some capital. The terms they wanted would have tied us up in knots and left us spending more time creating management figures for them than running the business.
So what the hell happened to these experts!
Its been going on for generations and generations and its logical to think that its not much to do with the current crisis ... mainly caused by arrogant nobbers who seemed to think they knew exactly what they were doing.
I remember going to a meeting for a £50k business loan in RBS in the early 90's. We had a good business but needed some capital. The terms they wanted would have tied us up in knots and left us spending more time creating management figures for them than running the business.
So what the hell happened to these experts!
Oct 13th 2008, 12:22 pm
#6
Straw Man.
Joined: Aug 2006
Location: That, there, that's not my post count... nothing to see here, move along.
Posts: 46,302
Oct 13th 2008, 12:29 pm
#8
Straw Man.
Joined: Aug 2006
Location: That, there, that's not my post count... nothing to see here, move along.
Posts: 46,302
Oct 13th 2008, 12:30 pm
#9
¿Dónde estoy?
Joined: Jun 2004
Location: my paradise - Jávea
Posts: 13,330
Those people even get a bonus when they are sacked!
Oct 15th 2008, 4:08 pm
#12
BE Forum Addict
Joined: Jan 2008
Location: The Charente - still smiling.
Posts: 2,624
Re: Spanish banks next
I've said it before and will say it again. The only connection between bankers and brains is they both begin with B and end in s. But so do B*lls.
