Thread: Shock & Awe Phase II: Germany to Ban Naked Short-Selling

Tuesday, May 18, 2010

Shock & Awe Phase II: Germany to Ban Naked Short-Selling at Midnight; Politicians Battle Markets; Short Selling Restrictions and Market Crashes

Shock and Awe I worked so "well" that it's time for round II: Germany to Ban Naked Short-Selling at Midnight http://www.bloomberg.com/apps/news?pid= ... Z6yo&pos=1

Germany will temporarily ban naked short selling and naked credit-default swaps of euro-area government bonds at midnight after politicians blamed the practice for exacerbating the European debt crisis.

The ban will also apply to naked short selling in shares of 10 banks and insurers that will last until March 31, 2011, German financial regulator BaFin said today in an e-mailed statement. The step was needed because of “exceptional volatilityâ€

Germany to Ban Naked Short-Selling

All right there "Mish" get on the wagon. What is being banned? NAKED short selling?

or,

ban on short selling financials in the US failed miserably.

Anybody make heads or tails of this article? Did I miss something? There is a big difference between NAKED short selling and shorting stocks.