13 August 2011

Short selling bans

Europe is being not just silly but acting dangerously by banning short selling. I have written about short selling several times in the past and how short selling prevents bubbles and frauds. Suffice it to add that, if someone is holding a hedged position and you ban the short side of the book, that person will also need to unwind the long side. Which can't be good for the markets right?

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