Keeping Both Eyes Open As The West Stumbles Into A Chaotic Brave New World
Thursday, August 11, 2011
Ban short selling. Kill price discovery. Guarantee big gaps down in equity pricing. That sounds like a great idea for a region in the early innings of waking up to a banking and sovereign debt crisis...
by Stephen Castle and Louise Story, New York Times
BRUSSELS — A European market regulator is considering recommending a temporary ban on negative bets against stocks across the continent, in an effort to stop the tailspin in the markets, according to two people with knowledge of government discussions.
The European Securities and Markets Authority, a body that coordinates the European Union’s market policies, has been requesting information from member states about such bets against stocks, known as short-sales...
Translation of the above article: "But, but, but, it sounds nice and I really want it to work, so let's do it!"
Magical Thinking at work, friends. This really may be the Big One.