Posts tagged…Financial Crisis

Shorting common sense

Sat, Feb 06 2010

I've previously noted that the policy of banning short-selling looked just like the sort of hunch driven regulation that hurts both the economy and common sense. Its prohibition of speculation on price falls was Canute-like.

Now here's some strong evidence that bans such as ASIC's had adverse impacts on precisely factor most needed in a crisis of market confidence: liquidity.

"The evidence…

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