Jump to content
House Price Crash Forum
Sign in to follow this  

Germany Drafts Wider Ban On Speculative Trades

Recommended Posts


A week after rattling global bourses and annoying allies with a unilateral ban on some forms of financial market speculation, Germany went much further Tuesday, proposing a law that would greatly broaden restrictions on several instruments that investors use to bet against stocks, bonds and currencies.

Despite criticism that market regulation will be toothless unless it is enacted globally, the German finance minister, Wolfgang Schäuble, on Tuesday proposed extending a ban on what the draft legislation called “certain transactions that amplify the crisis.”

There is broad support for such measures among leaders on both sides of the Atlantic, and some of the proposed rules are already in effect in the United States. Other European nations, however, have complained about Germany’s decision to act alone.

“What the Germans are doing would be all the more effective if it were done at a coordinated European level,” Chantal Hughes, a spokeswoman for Michel Barnier, the European Union internal markets commissioner, said Tuesday.

The draft law, released Tuesday by the German Finance Ministry, expands a ban on so-called naked short-selling to all stocks that have their primary listing in Germany, as well as on government bonds issued by euro countries.

The law, which will take at least until September to win passage in Parliament, would also ban naked short-selling of the euro, and enshrine a ban on use of so-called credit default swaps to bet against European government bonds.

This will teach the naughty markets to behave.


Oh do behave!

Share this post

Link to post
Share on other sites

were ******ed



Public servants and their central bank allies are in a struggle between truth and

fiction. The truth being that they are Insolvent; the fiction being that they are NOT.

Hardy har har. (Thank you www.zerohedge.com for the wonderful quotes). Euro

zone public servants are decrying ratings agencies which can no longer present

POLITICALLY correct and PRACTICALLY incorrect ratings.

“In some ways it’s a battle of the politicians against the markets. That’s how I do

see it. But I’m determined to win this battle” ‐‐Angela Merkel

Edited by lowrentyieldmakessense(honest!)

Share this post

Link to post
Share on other sites

I can buy insurance on my house burning down. I have no incentive to set it ablaze because I only get back in cash what I have lost to the fire. Now if I could buy insurance on your house burning down, I pick up the cheque without any loss. I have every incentive to ensure you house does burn. This is the situation with CDS's. When I can buy bond insurance on bonds I do not own defaulting, I am going to do all I can to bring that about.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.