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I bet Obi enjoying it
The dow is bouncing up and down the 10,000 line like a ping pong ball right now. ;)
Read “Aftershock”. Get out of stocks now! I’m still trying to get out of 2 stocks. Already pulled out of 3 previous. Keep your cash.
If S&P and Moody’s had done their jobs properly those ratings would have been reduced before the s**t hit the fan. One of the reasons this blowup became so bad is that the financial institutions were TOO LEVERAGED. If their borrowing costs had been higher they would not have been able to take as much risk.
I heard a wonderful idea on CNBC this morning - a small step that could help in the future:
If a bank/investment bank is going to do proprietary trading then they need to note on a trade confirm whether they were acting as a market maker or as a position trader on the transaction.
So if you buy a bond from them and it is a cross-transaction from another investor, the confirm would read “Market maker”. If the bank was shorting the bond or selling it to you from their inventory, the confirm would read “Proprietary Trade” (from inventory) or “Speculative Short” (self-explanatory).
This would give you full transparency on whether the broker-dealer you were working with was speculating against you or not. If you were buying a stock or bond based on that broker-dealer’s recommendation you would know if their trading unit was also following their researcher’s recommendations or not.
It would also help if we are smart enough to go back to the leverage limitations that were in place a decade ago.
A heck of a lot easier than this abortion of a financial regulation legislation that is not going to do anything positive.
“Given that Dodd’s bill affirms that the government will no longer help firms that are “too big to fail,”
This is BS. This bill was designed to save and bail out “too big to fail” and to track Individuals transactions.
WE don’t need a financial “EPA”. The BCFP (bureau of consumer protection)
This bill must not pass, but it will. The Elected Elite on both side want it.