Re: Judgment Day is Fast Approaching
back2basicz
11/28/2011 3:01:26 PM
Scott,
We have now reached the point of diminishing returns where even the Biggest bailouts dont provide much when it comes to returns.Case in point watch how quickly the Euro tanked on Monday.
Regards
Ashish.
Re: Judgment Day is Fast Approaching
Scott Raynovich
11/28/2011 10:06:56 AM
Ashish,
So true. Just read the newspapers (or Web) today -- I guess we've gotten to the point where the markets only rally on the hopes of even bigger and bigger bailouts.
-Scott
Re: Judgment Day is Fast Approaching
back2basicz
11/28/2011 9:19:01 AM
Scott,
It seems pretty unbelievable untill you look under the hood of the Global Financial System.
Once you do and prepare yourself for the new normal,such goings on are really not very surprising.
The State has gotten way too powerful today(with no checks and balances).The Financial Institutions (From The Banks like Goldman Sachs right upto The Federal Reserve) have all become extensions/appendages of the State whose principal job is to enrich themselves at the expense of ordinary taxypayers like you and me.
Once one fully appreciates and understands this concept the current goings on are not really very surprising.
Here's another cool link from Bloomberg showing if it were'nt for the taxpayer funded bailouts how much money the Banks would really have made in the last 3 years.
http://www.bloomberg.com/news/2011-11-28/secret-fed-loans-undisclosed-to-congress-gave-banks-13-billion-in-income.html
Crony Capitalism at is finest.Thats what America's Financial System has become today.
Regards
Ashish.
Re: Judgment Day is Fast Approaching
Scott Raynovich
11/27/2011 11:07:08 PM
"600 Million still missing after one month, and no arrest and conclusion. What we can say?"
It's really pretty unbelievable.
Re: Judgment Day is Fast Approaching
mInvestor
11/27/2011 1:50:43 PM
600 Million still missing after one month, and no arrest and conclusion. What we can say? The things are getting more ugly.
Re: Judgment Day is Fast Approaching
back2basicz
11/27/2011 1:22:21 PM
Tokyo,
That is primarily the problem here.Insurance is totally underfunded for most Investor schemes worldwide.
The so-called Law has been broken so many times over the last 3 years in this space that we should forget that the law will still be upheld today.
Regards
Ashish.
Re: Judgment Day is Fast Approaching
tokyogai
11/27/2011 1:05:29 PM
I am not so sure- when the funds were co-mingled that was clearly against the law and should be covered by the securities brokers insurance.
Re: Judgment Day is Fast Approaching
back2basicz
11/27/2011 12:56:34 PM
Tokyo,
The problem is largely with the sort of precedent this would set.
Insuring the accounts for one set of customers will mean you will need to do it for everybody,which is not possible given the paucity of funds available for this purpose today .
So No Insurance will not come through.I guess thats why most customers are so worried about the markets(& why Federal Reserve member Bullard says the system works).
Regards
Ashish.
Re: Judgment Day is Fast Approaching
back2basicz
11/27/2011 12:51:13 PM
Street Smart,
Your lack of faith in the system is entirely warranted.
However,the lack of regulatory muscle has a lot more to do with the revolving door present between Regulatory agencies and the Banks/institutions who are supposed to be policed by them.
For sure it is in the best interest of Financial Institutions to keep the system as it is and for this they lobby Congress quite extensively.But Congress is and remains very susceptible to public opinion which is quite frankly against any sort of support for the Financial System today.So one can expect stronger laws and regulation in the future(atleast untill the attention of the people is diverted elsewhere).
Regards
Ashish.
Erie,
Even experienced investors are questioning the rationale of staying in anything other than cash in this market.
Why is that?
When Segregated accounts get stolen from it is difficult to know whom to trust and for how much.
You are quite right to say very few new investors will enter the markets(inspite of all the cute and attractive ads to the contrary);this will reduce much needed liquidity in our markets and make swings in our markets even more pronounced and violent than it is already(Volatility will shoot to unbelieveable levels).
And for this we only have the Regulators(who were constantly asleep at the wheel) to blame.
Regards
Ashish.
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