Although the law of supply and demand not contemplated, there are ways to make money from shares plummet on the market. When rumors of a value will depreciate at once, there are investors who borrow these securities and sold to buy later at a lower price, and return later.

This is the mechanism that was seen during the subprime mortgage crisis, and falls in the so-called peripheral economies (Greece, Ireland, Portugal …) where speculators bet against mass toxic securities.

Of course, the investor leaves blessed by the collapse of values??, but businesses and economies, no. Especially when the game entered the inability of an entity to pay its debts, and was rewarded speculators by insurance that will guarantee the return of your principal and interest lost.

With the idea to avoid “short sales” will be created in Europe ESMA (European Securities Authority) with unlimited capacity to restrict or prohibit temporarily … Read More