NEW YORK ( TheStreet) -- You can always tell when stock market regulators have begun to panic. Beads of sweat form on their foreheads. Their hands tremble and their minds go blank. They experience memory loss. How else can you explain the decision of market regulators in Spain and Italy to reimpose a ban on short selling ( reported in the Chicago Tribune) that makes no logical sense?Studies of previous short-selling bans have proven, time and time and time again, that short-selling bans are a bad idea. They're not just ineffective but do actual harm to investors and stock issuers alike.
Short-Selling Ban Tomfoolery in Italy, Spain
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