Don't be cock, learn from the Americans

We are America's most ardent fans in everything the Americans do. We will eat shit if the Americans say it is good. We have copied and aped practically everything they do in high finance, managing the stock exchange and playing with derivatives under a policy of free wheeling and dealing with minimum supervision. Now the Americans have created this huge mess for the world. But the Americans knew that they have done wrong. They are thinking deeply on where they have gone wrong and are trying to rewind from their mistakes. They are not foolish or stubborn people who refused to admit their mistakes and will continue to do the silly things. Today I read in the paper that Geithner is seeking more curbs on derivative dealers. The days of free wheeling and dealing with minimum supervision and control are over. "'We propose to require all derivatives dealers...to be subject to substantial supervision and regulation, including conservative capital requirements, and strong business conduct standards,' Mr Geithner said, essentially acknowledging there were few limits in the past." In addition, these traders are required to keep records and reporting requirements. The objective is to prevent market manipulation, fraud and other abuses by providing full information to regulators about activity in the OTC derivatives markets. I think this is not enough, especially in a small market like SGX. Market manipulation through huge buying or short selling and programme trading, among other things, were the tools that big funds and house traders employed to exploit the weaknesses of small traders. Small investors have been incurring huge losses over the years without a clue to these unfair advantages and manipulation of big funds. It is time to continue to follow the Americans and rectify the flaws in the financial system instead of adopting the belief that no complaints means that everything is doing well. Stop the bleeding in the stock market where small investors have their pockets emptied by the big players. The new measures to be introduced by Geithner will dampen the high volatility of the stock market. But it is a necessary evil to contain the destructive manipulations and excesses of the big funds. The volatile trading activities must be curbed and some sanity return to the market. The stock market must operate and on its original premises and assumptions and sound principles, not the rules of a casino.