Wednesday, May 19, 2010
The Guardian reports, "Germany bans naked short-selling". Years ago I asked fellow Liberal and a stockbroker, Chris Wilding, what a financial headline meant. He responded, "Oh that means you're going uncovered bears". I was suitably enlightened. Now uncovered has become naked. It's selling stocks you don't own. If you sold someone a car you didn't own, you'd be guilty of an offence under the Theft Act for "dishonestly appropriating property belonging to another" and it would be no excuse that you planned to buy it before you handed it over. But of course the financial markets are a law unto themselves. High time they weren't. Good on the Germans, I say.