CNBC.com = fine story worth reading:

Investors Battle Fear, Fear and Fear

France - Italy BAN Short Selling.

Senior government sources tell Class CNBC, CNBC's Italian partner, that a short-selling ban will be imposed in France and Italy after Thursday's market close.

The report conflicts with what CNBC has been told by the European Securities and Markets Authority (ESMA). The independent European Union body, which provides a forum to national financial European regulators, told CNBC on Thursday that it is increasing its market surveillance following the rumor-led drop in French banks' shares that took place on Wednesday and then again Thursday.

While he couldn't comment on whether a ban on short-selling was to be carried-out, a spokesperson at the ESMA told CNBC there were talks about such a move but that such a move wouldn't be "today, or tomorrow, or next week."

The ESMA is aware of the speculation problem, he said, and that markets have become jittery about it. "Today it's about France; earlier, it was about Greece," he said.

Being a coordination organ, the ESMA cannot enforce such a ban, but what they can do, the spokesperson said, is offer a table around which European regulators can meet and agree on a coordinated action.

Meanwhile, the UK regulator, the Financial Services Authority (FSA), told CNBC.com on Thursday that it had no plans to ban short selling in Britain.

Riots and more

I have held off making any hasty comments about the latest Market carnage and the very troubling riots in the United Kingdom - until I got the facts.

Facts are: Youth unemployment in Britain is endemic and getting worse. Food and shelter are expensive in the UK, like everywhere else, and a lot of young folks realize they will never have a decent life. No jobs - no future. Bleak would be the word.

The whole world has been watching the gyrations on the Stock Markets and this stems from too many years of fiscal stupidity from Central Governments.

We have a QUADRILLION dollars worth of CDS (*look up Credit default swap) off books around the planet - and no one knows who owns or owes what.

The Credit system came close to seizing in 2007-8.

Once again, we are close.

Nervous times.

Downgrade - cancelled?

Now word from Washington is that S and P might have to change it's mind on US downgrade.

OK. What's the deal. Faulty math is the reason - yeah, right.

US Downgraded = now what?

Bill Bonner, Martin Weiss, Sean Brodrick and some of the big thinkers have warned that the US could lose AAA status and now. according to Standard and Poors - it HAS.

What does this mean.

In a word. FEAR, and losses.

My portfolio tanked so bad, I got an e-mail apology from my money guy.

Rates are going to go to the moon on US paper.

The Bond Vigilantes must be carrying AK-47's, and banana clipped.

Watch the Markets in Asia on Monday.

Very close eye on silver and gold.

Standard and Poor's Downgrades the United States!

The ratings agency Standard & Poor's has reduced the United States' credit rating from AAA to AA+ with a negative outlook, the company announced late Friday.

"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," Standard & Poor's said in a statement announcing the move.

"More broadly," the agency added, "the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

The Market Meltdown today

Cash is becoming the name of the game again.

Markets around the World, tanked today.

The DOW and S&P, Canada's TSX, and VSE = squat.

The VIX has risen 35% in the last three days - now at it's highest point in 5 years.

There is something nasty out here and I think that people are waking up to the fact that QE3 has begun in the States.

This is an awfully scary time.

Think the American electorate will fire the entire Congress and Senate - it's happened before.

Obama has dropped the ball, worse than a third grade, Little League, duff.

Prudence and patience. Those are the bywords.