Monday, November 8, 2010

SEC placating? Or actually set to curb flash trading?

wsj story on attempt by sec to get handle on flash trading, while putting in place circuit breakers that will actually prevent the likes of the flash crash seen a few months ago. 

Recently I saw that the average length of holding a stock had gone down to some ridiculous number less than 20 seconds.  If the SEC doesn't get a handle on these computerized trades the common person will stand little chance of success in the stock market.  These ridiculous swings in pricing at the blink of an eye will forever know the small investor out of the market. 

The trust of Wall Street is an inherent part of the foundation of our capitalistic system.  If we allow money managers and the like to abuse the system with little regard for the common man, the growth of our economy will be stunted.

SEC placating? Or actually set to curb flash trading and restore trust?

Currently the country is being run by the financial system.  Congress and the administration, current and past, have had plenty of opportunity to protect the interest of Main Street America.  They have failed to step up to the plate to challenge the BIG MONEY institutions and repeatedly have caved to the demands of the Too Big to Fail Banks.  

The SEC has to create a system that is not based solely on the demands of Wall Street.  We are at a cross roads in our history.  The opportunity to show the world that the US government is not bought and sold by the big money players.  There is no trust in Wall Street or our financial system in middle America. 

The SEC has ignored laws on the books regards MBS, CDO, and CDS paper when rampant fraud and abuse was present.  There chance for redemption is in front of them but the banks and bankers continue to call their bluff. 

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