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Not to mention that I can't imagine how illegalizing trading and other knee-jerk reactions could possibly instill confidence in the market. Even if they can slow the decline, it seems like they'd just enlongate the decline until it reached a similar reality (if their actions don't actually increase the sell-off out of fear).


Well Europe did ban short selling in bank stocks and CDS for quite a while [1].

[1] http://uk.reuters.com/article/2010/08/06/us-eu-shortselling-...




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