Market chaos warning after German ban on shorting

[Black Swan]

Yay :clap:, nice to see the statists' version of the free market at work...how the fook is a free market supposed to operate without an effective means of price discovery? I thought/hoped the G7 had moved past all this... wtf do they think'll happen when the ban is lifted? 🙁 Please tell me some of you guys are cleaning up on the bund..😏

Traders are predicting chaos on the world's second-largest government bond market after the German authorities on Tuesday announced a ban on all naked short-selling in European public debt, as well as shares in the country's 10 largest financial institutions.

http://www.telegraph.co.uk/finance/...aos-warning-after-German-ban-on-shorting.html

 

[Adamus]

They're talking about credit default swaps and it's pretty obvious that the person who wrote the Telegraph article doesn't know what a CDS is. Come to that, I never realised you could sell 'em short. I'm sure it is just a storm in a teacup, part of the normal cut & thrust between the regulators and the regulated.

The German authorities probably had good info that some cleverdicks in Frankfurt were trying to emulate Soros against sterling in 1991, but using the CDS market against Euro debt.

God knows how the Telegraph managed to make the link to the Dow Jones falling 1%.