This all sounds so familiar.... change the country, change the instrument, all the world wishes reality would not be what it is. Decades of overspending & over leverage are coming to 1 shore after another. While I don't see much use for naked CDS myself (other than as pure speculation) vs a very legit use of CDS against long positions one might own, the time to 'regulate' them was a long while ago - not in the middle of crisis. As for naked short selling of stocks; that should have been fixed ages ago - but I guess the investment banks and their clients were too busy making money on it for years. I am surprised the Europeans had not followed the U.S. lead when it finally got around to 'fixing' it a year and a half ago domestically. (of course our financial oligarchs said it would be too hard to fix it - until they themselves were attacked by naked short selling)

Germany attacks ...

  • The German government plans to ban naked short-selling from midnight at the country's 10 most important financial institutions, a spokesman for the Finance Ministry said on Tuesday.
  • The spokesman said the ban on naked short-selling will also apply to credit default swaps (CDS) on euro government bonds as well as euro government bonds.