Wednesday, July 13, 2011

The Effectiveness of Short Selling Bans (sarcasm)

With Italy now requiring disclosure of short positions and debating an actual short selling ban I thought the following news headlines and accompanying charts would be reassuring to observe.

SEC bans short-selling
Agency puts temporary halt to trading practice that 'threatens investors and capital markets' for 799 financial companies.
By David Goldman, staff writer
Last Updated: September 19, 2008: 7:41 AM EDT

"This will absolutely make a difference," said Peter Cardillo, chief market economists at Avalon Partners. "Short sellers are going to have to cover their positions very heavily."

Schaueble plans to ban short-selling –sources
BERLIN | Tue May 18, 2010 12:16pm EDT
BERLIN May 18 (Reuters) - German Finance Minister Wolfgang Schaeuble plans to ban short-selling from midnight, coalition sources told Reuters on Tuesday.

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