Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : The Castle -- Ignore unavailable to you. Want to Upgrade?

To: The Philosopher who wrote (3062)	3/11/2004 4:13:18 PM
From: tejek	Read Replies (2) \| Respond to of 7936

a. Nobody is forced to buy on margin. Buying on margin is one of those intersections between greed and stupidity. If people want to be greedy and stupid, that's their right, and I don't see why it's the government's obligation to prevent them from being greedy and stupid. Some people could make lots of money borrowing very heavily on margin who are now prevented from making those fortunes. So we punish the capable to protect the stupid. That's a good way to build a society of mediocrity, which we have, but a lousy way to build a dynamic society where those with the most capability, rather than the largest starting pot, can rise to the top. Margin accounts are better than nothing. Prior to the 1930s, many people were not required to put up any cash when trading on the markets. 2. Federal insurance, which is compelled insurance, also rewards stupidity and punishes competence. You'd feel differently if you had an account at a "stupidity" bank and there was no FDIC when it flatlined.