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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: not_prudent who wrote (134297)	6/9/2010 11:33:58 AM
From: ChanceIs	Read Replies (1) of 206223

I think I will concede defeat on this one. This matter of regulation might come down to "Can't we all just get along." A naive approach at best. I think that at the end of the day he who survives and prospers will have been sharp and on his toes - and cynical. I was listening to Elizabeth Warren last night, the point person on overseeing a lot of the banking/mortgage bailouts. She is a pistol. Bordering on profanity she was saying things like....'Only a complete idiot could not have seen the housing bubble. How *&&^%^& stupid did you have to be.' I don't have a lot of sympathy for those who lent money to the banks to make bad mortgages or took stock in those banks. I have only slightly more sympathy for BP shareholders. One can't ask for a trip out to a rig in the GOM to observe their safety practice first hand. One could easily see the housing bubble, and read a bank's 10K to look at mortgage exposure, and go to the annual meeting and say, 'Excuse me, just how much have you exposed me to no-doc loans on properties selling at 2X of what they were three years ago.' There was an interesting - but biased - article from the WSJ yesterday pointing out how Ronald Reagan had coined the term, "regulatory capture." Regulation/ratings is a b&ch to get right. Lots of misplaced characterizations of free markets IMO. I used to be a buy-and-hold type. Stop loss orders!?!?! Cutting losses at 10%!?!?!?! What foolishness. One doesn't succeed at investing if he lets a few down days in the market "frighten" him out of his position. BP might have run into the mother of all Black Swans. That earlier post about BP sinking pension funds was fascinating. The pros are sitting there wondering what hit them. Do you think that those guys get to place stop-loss orders on 25 million shares positions??? I seriously doubt it. I have learned to hedge and bop and weave a lot more. I still like to hold with my left and trade around my favorite positions with my right. I haven't read Taleb in a few years. I think it time for me to revisit that. I think that we are all learning that there a lot more land mines out there then we thought. I do business with Charles Schwab. A few years back they invited me to an all day investing conference. I was happy to attend. One of the "tracks" featured a full time trader. He said outrageous things like....'you have to trade'...'you have to learn to short'...'buy and hold is for suckers.' Members of the audience - every ten minutes it seems - would say....'but Charles Schwab says we should all buy and hold'...'shorting can have unlimited loss'...'shorting is evil.' The instructor just kept saying...'Look. I don't work for Charles Schwab. I was hired to give this lecture'...'There are sharks out there in the market'....'Once you take a position, its all about risk management.' Glad I went. He has a one week course out in San Diego. Someday I might go take it.

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