Posted by & filed under Economic Analysis, Governments & Regulators.

Description:  Germany’s unilateral plan to stop short-selling doesn’t look well thought out. Dow Jones Newswires’ Mark Cranfield reports.

Source:  Marketwatch.com – video report
 
Date: 05/19/2010

Link: http://www.marketwatch.com/video/asset/euro-hit-by-german-proposals-to-ban-shorts/1A26355B-337A-4DF9-91DB-8E8047F8536B

Questions for discussion:

  • Summarize the positive impact that this ban is expected to have on markets?
  • What negative impact is also possible?
  • Given these considerations, is the policy a proper one?
  • Are there alternatives that would deliver the same desired outcomes?

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