Quote:
Originally Posted by semlin
that is not a reason to abolish a market.
pension plans and investors distort all markets by pumping dollars into them in good times and bad. in a down market those guys will chase anything that is moving up and often overdo it, allowing more prudent investors to reap profits shorting them back down. you can't regulate the herd mentality.
|
Never my intent to abolish the market. One thing that could be done is to end leveraged futures trading. You want to buy a futures, back it up with cash. 100%, 75%, 50%? No clue here as I am told it has it drawbacks.
The other problem is if we put too many regulations on, it will just drive the trading overseas.
At some point this will crash. Will it be an 80's style crash where oil dropped almost 75%? I don't think so, but it will be significant.