According to a story by Investment News...
"The Public Investors Arbitration Bar Association, a group of lawyers that represents retail investors who sue brokerage firms, in a new report Wednesday morning took aim at perceived conflicts of interests at the board of governors of the Financial Industry Regulatory Authority Inc."
Read more at...
Some think we are headed for another big crash - and that algorithmic trading will make it worse than anything we've seen yet. What do you think? Are you prepared?
Janet Yellen says the regulations are essential to preventing the next market failure. But to what extent did the address the real reasons for the collapse? Derivatives are still barely regulated - most, like the mortgage products and the related credit default swaps, not at all. Mortgage-based derivatives are not gone, plus we have new derivatives, this time based on auto loans and student loans. Let's hope students find well paying jobs when they graduate! Also, the banks now have to keep higher reserves and pass stress tests to prove that they wouldn't need public funds to keep them afloat in the next crash. But the Supreme Court nixed the AG bailout, calling into question government's ability to bail anyone out in a future crisis. And finally, the run up this year is based in large part on perceptions/expectations that the party in power will be able to pass tax cuts. But how does Dodd-Frank protect us from the fallout when the markets realize that those cuts, and perhaps even spending allocations for the next fiscal year, won't materialize? Chairman Yellen says the regulations are essential. Do you agree?
Would you get investment advice from Amazon? Would you buy stock from them? We're not the first to think of this... I think even Cramer had something to say about this a while back.
From Investment News
What would it take for you to switch from E*Trade or Ameritrade or Schwab to Amazon?
Last month the House passed the CHOICE Act, its effort to repeal much of Dodd-Frank and give the states more individual authority over securities regulation. Karen Kunz talked with Wisconsin Public Radio's Culture Time about its potential impact on Dodd-Frank www.wpr.org/house-republicans-pass-choice-act-repeal-portions-dodd-frank
Authors Karen Kunz and Jena Martin of When the Levees Break recently wrote a conversation piece on theconversation.com discussing the Dodd-Frank Act, and how both political parties are wrong and should take a step back to analyze the best way to prevent the next financial crisis.
Read the entire story here: https://theconversation.com/why-dodd-frank-or-its-repeal-wont-save-us-from-the-next-crippling-wall-street-crash-73417
There is a disconnect, or more precisely, a disaggregation, in our current markets between the companies in our regulatory framework and the stocks that purport to represent them.
We don’t buy stock to invest in the company anymore – often we don’t even understanding what the companies we buy actually do or make. Now we buy stocks because of the value they represent. We buy analysts’ picks because the prices will go up – or down if we’re hedging our bets.
What stock have you purchased recently solely because you love the company and think of it as a good investment?
*stock certificate courtesy Google Images
We think regulation of investments and investing has become so complicated and complex that that is has become incapable of accurately monitoring and regulating the flow of investments. With the power of a tsunami, the last crash shook the very pilings our our system. The next one may wipe them out.In our book we envision an entirely new way to look investing and regulation with an eye toward shoring up the original concepts of the 1930s. We plan to use this site and our blogs to talk about our ideas. We hope you will join us and look forward to your thoughts and ideas!