muses of the moment

September 29, 2011

No shorting in Europe

Filed under: Stock Market — totallygroovygirlfriday @ 1:24 am

Click here. Italy extends short ban that was set to expire at the end of the month.

Whether the investment options of today (shorting stocks, etc.) are good or bad is not the point. If Europe bans shorting stocks, investors will just sell long positions to advert risk. Banning shorts in this environment may help daily volatility, but it doesn’t help a declining stock market or global debt crisis and signals to everyone that this is not under control.

Obviously, the European markets expect a wild ride ahead.

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