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February 27, 2022 | Russia Bans Short Selling

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

Russia’s central bank announced that they would no longer permit short-selling Russian stocks. Once a market turns down and confidence vanishes, the only support is short-covering. Without that, you get the 90% declines, as was the case during the Great Depression in the USA. They were hunting down shorts aggressively, and nobody would play the short-side. This resulted in a steady erosion of the market value. The MOEX crashed 45% on Thursday when the central bank made the announcement. Only shorts will take the risk o

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February 27th, 2022

Posted In: Armstrong Economics

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