Merkel Plans To Extend Ban on Naked, Short-selling of Derivatives

May 26, 2010 (LPAC)—In a move that already has the British Financial Times upset, German Chancellor Merkel has announced plans to extend the ban on naked short selling of some securities and ten stocks (that shook up the financiers last week), to cover all stocks listed in the Federal Republic of Germany. The move is part of a general crackdown on financial-market speculation, which Germany believes has gone on for too long without EU or G20 regulation. (Naked short-selling derivatives mean you don't actually have to possess, or promise to borrow, the security you are short-selling.)

People briefed on the matter said the Government was following through on a promise to turn last Tuesday's temporary ban into more permanent legislation. The Cabinet could sign off on a bill this June. The proposals would also be extended to certain euro currency derivatives, and would make more transparent who was selling short and in what volume.

This latest step is likely to draw the ire of the British imperial monetarists. Next week, U.S. Treasury Secretary Tim Geithner will be visiting Germany, and one ranking member of his staff has already thrown a public fit against Germany for taking the measures, which show a certain Executive spine. In the United States, British puppet Barack Obama used every dirty trick in the books to make sure that no anti-derivatives' steps be taken in the "Dodderer" financial regulation sham.

 THE NEW AMERICA