Short Selling/Naked Short Selling - What is it?

**On the NEWS**: Merkel introduces ban on naked short selling from midnight tonight  
**On the NEWS**:  There are $250 billion in naked CDS outstanding; they have 4 hours to unwind . . .





There was a great explanation on short selling by mikla on ZeroHedge on Tue, 05/18/2010 - 13:14
#358589

Shorting (good) and "naked shorting" (bad) are different.

Shorting:  (example), A stock's current market price is $100.  I think it should sell for $80, so I won't buy it.  However, I'll sell it for $100, because I think the market will soon figure out it should be priced at $80 (and I'm willing to incur risk while I wait):

Charlemagne and Currency: The King Father of Europe

In 787 Charlemagne established a new system of currency, higher standard. England’s King Offa adopted this system. It was so sound that it was continued to be used until it was dropped by the United Kingdom in 1971.
http://books.google.de/books?id=bQlJP9O9hKkC&lpg=PA97&ots=Rifs9N_c1b&dq=John%20J.%20Butt%20charlemagne%20mint&hl=en&pg=PA99#v=onepage&q&f=false

Currency Crisis

Here is the "apt" Ron Paul talking about how Ben Bernanke (FED) is creating something far worse… a currency crisis.

apt:  unusually intelligent; able to learn quickly and easily, suited to the purpose or occasion

May 2010 update on Europe and Asia

Marc Faber, publisher of the Gloom, Boom & Doom report, talks with Bloomberg's Haslinda Amin about the outlook for China's economy. Faber, speaking from Hong Kong, also discusses Greece's debt crisis and the euro, the commodities market, and the implications of political unrest in Thailand for the nation's economy and stock market.

 

The Austrian Theory of the Trade Cycle

Ludwig von Mises wrote about the Trade Cycle

Presented by Roger W. Garrison at the 2009 Mises University. Recorded 27 July 2009 at the Ludwig von Mises Institute; Auburn, Alabama. Category:

Check Kiting

WIKI:  Check kiting is the illegal act of taking advantage of the float to make use of non-existent funds in a checking or other bank account. It is commonly defined as writing a check from one bank knowingly with non-sufficient funds, then writing a check to another bank, also with non-sufficient funds, in order to cover the absence.^[1] The purpose of check kiting is to falsely inflate the balance of a checking account in order to allow checks that have been written that would otherwise bounce to clear.^[2]
Some forms of cheque fraud involve the use of a second bank or a third party, usually a place of retail, in order to delay the absence of funds in a transactional account on the day the cheque is due to clear at the bank, essentially robbing Peter to pay Paul. Such acts are frequently committed by broke or temporarily unemployed individuals or small businesses seeking emergency loans, by start-up businesses or other struggling businesses seeking interest-free financing while intending to make good on their balances, or by pathological gamblers who have the expectation of depositing funds upon winning. It has also been used by those who have some genuine funds in interest-bearing accounts, but who artificially inflate their balances in order to increase the interest paid by their banks.


Treasury Redeems A Gargantuan $643 Billion In Treasuries In April