5/08/2010

The Regulators say Yes!

There are now wild cries about what happened on Thursday in Wall Street when the stockmarket plunged nearly 1000 pts because of a likely error trade that triggered the machines to do the necessary. The stock market went into a tailspin leaving the traders and Regulators terrified but not knowing why and what to do. They are still trying to find out. They may have known the answer but refusing to face the truth. The truth is that the whole stock market system is mismanaged and completely flawed, and is a system of fraud to favour the big crooks. And all because the Regulators say Yes. The Regulators say Yes to the crooks and scoundrels who had them by the neck and telling them or dictating to them what to do. The crooks say we want to play very big and need big limits to trade and the Regulators, say Yes. The crooks say we want to trade very big and with no cost, no commission, maybe a little pittance for the Regulators, and the Regulators say Yes. The crooks say they want to use machines, high speed computers to do their tradings and the Regulators say Yes. The crooks say they want an open trading system to enable their machines to hook to the Regulators machines, to have all the information of traders in the market, the buy and sell orders, etc, and the Regulators say Yes. And the Regulator dismantled their proprietary system and installed an open system for the crooks to play. The crooks say they should not be penalised for using unfair means and unfair advantage against the small traders, and the Regulators say Yes. The crooks say in such trading they cannot be sure if they buy and sell to themselves which is against the rules and regulations of trading, and the Regulators say Yes. The crooks say in some of the things they do it could not be transparent, trading in the dark side, and the Regulators say Yes. The crooks say they want to create plenty of worthless papers like CDOs and all kinds of derivatives to sell to the investors, with no guarantees, and the Regulators say Yes. The crooks say the investors may not know what derivatives are all about and the Regulators must train them, and the Regulators say Yes. The crooks say if the investors refuse to trade in derivatives, the Regulators must force them to trade in derivatives, and the Regulators say Yes. And the crooks say because they are trading big, they want to have lesser regulations or deregulations, and the Regulators say Yes. And the crooks also want to short the market, sell short, even bringing down prices of good stocks at will, and the Regulators say Yes. But it is against the rules to sell short. The crooks say they can borrow scrips to settle, and technically not shorting. They want the Regulators to create a system for scrips borrowing, and the Regulators say Yes. And the regulators did not know why Dow crashed on Thursday? And the American public suddenly are so much wiser, including the professors, and are crying foul and wanting an overhaul of the system determined by the crooks and approved by the Regulators who say Yes to the crooks.

6 comments:

Anonymous said...

There is a solution for the world Sir Redbean.

Back to barter trades and there will be no nonsense.

Run out of money, but got money printing machines, print lah. The Japanese did it, the American doing it now, why can't the other nations do it?

patriot

Matilah_Singapura said...

I don;t know why you think that a plunging stock market is "bad".

Because of govt involvement (regulation, SEC, bailouts etc) the game is fixed anyway -- the once "free market" is now severely corrupted by POWER -- absolute power -- the law and "authority" of the state.

Therefore it has always been my stance to wish and hope for severe DOWNWARD moves in the stock markets.

Whilst markets move all the time -- sudden LARGE increase or fall are signs that something is wrong in the capital structure.

Let the market collapse and enjoy it. Celebrate it. Sacrifice an animal for it and choose a god to pray to.

I am hoping for more falls and celebrating everytime they occur!

Matilah_Singapura said...

P.S. Let the machines play. Program trading is an exercise which almost guarantees brutal shorting cycles -- very quick and extreme negative reinforcement to a falling market :)

Burn, baby, burn!

Anonymous said...

Too late to talk about regulators and regulations. The crooks already made their money. If the regulators are competent and honest, this would not have happened.

The honest people would just have to continue to slog for a living. They are the ones to suffer for the sins of the crooks. Lessons were never learnt.

Amen!

Chua Chin Leng aka redbean said...

Matilah, I am not against the normal yoyo trend of the stock market. What is very clear here is that the regulators are sleeping with the crooks and let the crooks dictate how the game should be played, to the crooks advantage.

I say, hang the regulators. The investors should sue the SEC for all their losses during the steep plunge and all the losses since the unfair system was designed. The SEC has a duty and responsibility to create a fair system for all investors, the playing field must be levelled.

Sue the regulators and make them account for their stupidity.

Matilah_Singapura said...

redbean's wishful thinking -- hoping for the impossible to happen:

> Sue the regulators and make them account for their stupidity <

Good luck. The govt is not a private business lah. In the private sector you screw up, you eventually pay, and lose money or your job or your business.

The govt can mess up -- either through stupidity, incompetence or pure corruption -- and it is "business as usual" tomorrow, and forever.

As for the regulators: I'll bet that most of them will get promoted.