Friday, May 21, 2010

Financial Regulatory

German Chancellor’s ban on the naked sell came unexpectedly, stirring panic in the European market, worrying any uncertain subsequences may follow. The motion was to curb the speculation during financial turbulence. Many hedge funds expressed their disapproval, saying the short selling is not as serious as people thought, of course they voiced out from their own interest.

This ban should have been imposed long time ago. The speculators abuse it as gambling tools to generate fortune. The ordinary investors are forced to pick up the consequences. The ban wouldn’t be much effective if other major stock markets do not implement the similar measure.