This is starting to look like a gigantic unforced error on the part of Angela Merkel.The new short-selling restrictions are out, and apparently they extend all the way until March 31, 2011 as a response to volatility in the bond market.
We really have no idea what Angela Merkel is thinking, but if the idea was to reduce volatility, it seems safe to say that it’s already failed badly.
The Dow is off about 100. The NASDAQ is off 38.
Next up the euro crashes through 1.22.