Sign up for free newsletter

 

Andrew Shrimpton, member, Kinetic Partners

Comment: Short-selling ban will increase risk of recession


The introduction of a ban on short-selling by several European countries will increase the risk of a full-blown recession, says Andrew Shrimpton of Kinetic Partners…

The banning by France, Italy, Belgium and Spain of the short-selling of financial stocks for at least 15 days with effect from today will only reduce price volatility for a few days at best. As demonstrated in 2008, when similar bans were in place, volatility increases after a day or so because liquidity in the stocks is significantly reduced. This measure will reduce the ability for banks to raise capital and increase the risk of a full blown recession in the countries that have adopted the ban.

Furtherreading
from our other sites
events
3 days 18 hours from now - Paris
1 week 18 hours from now - London
1 week 1 day from now - New York
1 week 1 day from now - London
2 weeks 2 days from now - New York
training
Sun, 19/03/2017   - London
Mon, 20/03/2017   - London
Tue, 21/03/2017   - London
listingsdirectory
IKONIC Fund Services Ltd.
Tue, 29/11/2016 - 11:28
Backstop Solutions Group
Tue, 08/11/2016 - 17:44
The Gemini Companies
Mon, 17/10/2016 - 11:51
specialreports
other gfm publications