Germany is going nuclear with their insistence on issuing a ban on short selling. Do they not pay attention to history? What did that ban in 2008 do to our stock market after it was widely implemented? Lower and lower prices. Because you cannot short sell a stock (for only a limited time) does NOT mean you cannot sell your holdings. Such rules have NEVER been beneficial to markets as the government tries to 'game it' and gain the upper hand. However, that hand swings and misses each time. Once in Pakistan this was implemented and the next several months saw the Karachi market decline more than 50%!
Even though Germany is far from a democratic society, perhaps they could learn some lessons from the past and let markets do what they do. Government intervention and rules are not always the answer.
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