France, Spain, Italy Have Learned Nothing From Dick Bove

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Barely two days ago he patiently explained that "you can’t break the bank by driving the price of the stock lower," but European regulators don't seem to get it. And since their ban on short sales of financial stocks has worked so well to prove that everything's okay, keeping the two-week drop in European bank stocks to just 8%, they figured they'd just keep it up.

Does no one get how this stuff works? How about this guy:

“Short selling equities is not a significant danger to financial stability, so these bans are irrelevant,” Richard Portes, professor of economics at London Business School, said in an e-mailed statement.

Yeah! What else does he have to say?

“The serious problem is speculation against financial institutions and sovereigns using naked credit default swaps. They should be banned.”

Oh. Crap. Good luck with that, Europe.

France, Spain, Italy Extend Bans on Short-Selling [Bloomberg]

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