19 May, 2010

A simple economics lesson

No one should be surprised when European stockmarkets fall after Germany bans short selling.

If you buy something and someone restricts what you can do with it, it is worth less.

Europe seems stuck in the rut of blaming others. Instead it should be asking 'why isn't it a rush to buy our stocks which is causing market turmoil'?

The answer is the incomplete nature of the eurozone. It should either be a total political and economic union or not exist at all.

I would favour the latter. So would most Germans.

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