Published on The Market Ticker, by Karl Denninger, May 18. 2010.
If you thought the German government was going to be a lapdog for Sarcozy, or worse, was going to fellate Brussels and the ECB, you got a rude shock today. It appears that the German Government has just plain had enough of the crap that the banksters have tried to pull, and has decided to do what Barack Obama should have done in early 2009. That is:
- No more naked credit crap, especially against sovereigns but not only against sovereigns. No insurable interest, no CDS – period.
- Naked shorting will now be actually stopped in 10 leading financial institutions.
- Germany has had it with naked shorting of Gold, and specifically noted bank manipulation of gold prices via naked shorts beyond intent or ability to deliver.
- Germany has also said that they’re not going to permit Euro derivatives that are not a “bonafide” FX hedge. That is, no more naked bets on Euro movements either.
- Hedge funds are going to be regulated, position size limits mandated and enforced, reporting enhanced and a transaction tax is coming.
It’s about damn time.
Oh, and it appears that instead of telling all the banksters what they were going to do and “getting permission” first, or even discussing it with other governments, the German Government did what all governments should do – make up your mind and then do it without giving a good damn whether the banksters or other governments like it – and without giving them input into the decision or notice that it’s comin … //
…Many said that the Germans were not “really” arm-twisted by Sarcozy and the French Banking interests a week or so back. I think we can put that to rest here and now, as it’s pretty clear that the truth is something else entirely.
Now Barack, about your willingness to get up off your knees and kick these banksters in the nuts?
Better late than never. (full text).