xjo weekend zoomba lounge, page-131

Just following the consolodation and propping up of Banks in Europe..I see now Belgium Banks are under scrutiny..

Dexion looks like being purchase by BNP from France which is also under threat of downgrade.....

As the Banks consolodate debts and the assets are written down in the process....effectively, the debt is absorbed in the martkets

downgrade value of asset = Lower SP of the Purchaser
Consolodation = write off of debt values
Lower debt values = less interest to pay
Less interest to pay = improved ability to pay back sovereign debt pricipal

The shareholder absorb the hit by transfer of debt and assets under the smoke screen of a falling market and a Greek default..

Very orderly and very tidy...Except for the shareholders...


The financial sector globally will take a tremedous hit during this process and I will be shorting banks as hard as I can....

Can anyone tell me what happens to traders who are short banks and a ban on shorting is imposed....what happens to the open positions?????

I expect the short ban on banks to be a global event.