French President Nicolas Sarkozy and German Chancellor Angela Merkel wrote a two-page letter to the European Commission seeking to ban naked short sales of sovereign credit default swaps, while also wanting to ban some government debt and some equities.

Last month, Germany already banned naked sovereign credit default swaps, yet this move by one single economy is not enough. After German had imposed this ban, we witnessed global stock markets tumble while the euro dollar pair to decline to the lowest levels in four years.