Tuesday, May 18, 2010

Germany bans short selling of some stocks and bonds

http://online.wsj.com/article/SB10001424052748703957904575252611852571860.html?mod=WSJ_business_whatsNews


Voltron says: This takes effect at midnight at is in force until 31 March 2011. The US enacted a similar ban, just as hastily, during September 2008, with disastrous results. Short sellers are the only buyers in a crashing market when they close out their positions, so when you ban short selling, you create a vacuum under the market.

See my previous blog posts from Sept 08:

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