What does Germany’s recent ban on “naked short selling” of stocks mean?

In view of the deep debt crisis in the Eurozone, and just after the EU has just introduced a 750 billion euro rescue mechanism, Germany’s ban on “naked short selling” was originally intended to curb speculation in the financial market. It seems that "there is no silver here", to a certain extent, it highlights the signal that the European market will continue to deteriorate. It can be said that it is "self-inflicted". In fact, the source of the economic crisis is not due to short selling by speculators such as Soros, but because speculators saw the problem and went short. Based on the current situation, it can almost be concluded that even if the financial regulatory agencies of various EU countries follow up and all implement "naked short selling", they will not be able to avoid the outbreak of the European financial crisis.

With global economic integration, mankind’s economic development in the past 30 years seems to have surpassed the process that could only be completed in the past hundred years. However, throughout the world, almost all economically developed countries have fiscal deficits. Among them, the United States, Japan and the United Kingdom have the largest budget deficits. Industrial countries such as Germany, Italy, France and Canada also have huge fiscal deficits. Especially in recent days, can it really be said that "the whole world is in the same situation"? Bad news in North America also hit the headlines. In the first quarter of this year, as many as 775 banks were on the verge of bankruptcy in the United States, and the unemployment rate rose again. In Canada, in order to avoid a financial crisis similar to the United States in the past two years, interest rates have dropped to historical lows, and the relaxation of credit has caused Canada's per capita debt to exceed a record. , up to 42,000 Canadian dollars, completely comparable to Greece.

On the surface, the Eurozone’s public debt problem has slowed down the pace of “global economic recovery.” In essence, it is the “bailout” approach of various countries in relaxing credit in the past two years, which is what led to this economic crisis. The source of it is like drinking poison to quench thirst. Many economists predict that the second wave of global economic crisis has begun, and is about to enter a "Great Recession" like Japan, which has lost 10 or even 20 years.