Yesterday, Germany Banned Naked Short-Selling at Midnight and Politicians Declared War on the Markets. Today, the markets responded with a shock and awe of their own. Please consider Swaps Soar on Germany’s ‘Act of Desperation’Credit-default swaps soared as German Chancellor Angela Merkel’s curb on using the contracts to speculate on European sovereign debt sparked concern among investors about increasing government regulation. The Markit iTraxx Crossover index of swaps on 50 European …

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Germany’s Act of Desperation: Shock and Awe for Who?