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.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (28981)	9/25/1998 10:02:00 PM
From: James F. Hopkins	Read Replies (2) \| Respond to of 94695

Hi Haim; I'm not sure of what you mean by higher margin, to let them have more ? or make the requirements higher ? To allow less margin is what I was getting at. They did that with mutual funds after 87, but it seems it didn't apply to hedge funds , which are largely unregulated. Problem here is when one of them slips their profits out the back door to some Swiss account, then keeps on playing with the clients money leveraged to all get out, and then gets caught on the wrong side of the curve, the insiders already have theirs. So they just default..and leave town that default mushrooms right down the line to every one, including you and me, even though we were not in the that game, the default means the bank or something got stuck on the other end of something that could not pay up. To offset that loss they have to sell assets, and that's were the little guy starts getting burned. That this could even happen after all these years and people be dumb enough to not know how it happens is beyond me. The banks or what ever didn't get stuck by some accident, ( it's all under the table payola ). ---------- That the Fed or SEC has not place insider trading rules on fund mangers is also sick. Any manager can buy xyz in his personal account then use the fund to run xzy up. Then sell xyz from his personal account and or short it before he dumps the fund out. There are no rules preventing none of this if you do catch one all you can do is sue the fund. Hell the jerk should have to serve hard time, but no instead we give these parasites the right to steal, heck we even encourage it. They get fined here and there almost token sums, then turned lose & never have to admit they stole anything. When all along the SEC knows they did. And the fines are a paltry amount to what they steal. It looks like the SEC is just there to make people think the market is being policed. As far as I'm concerned it's a joke, the only ones that ever get caught are pure stupid, or fail to cut their boss in. So the old, "ask not for whom the bell tolls, it tolls for you and me " These defaults don't just hurt the Banks or whatever they run right on down stream, to clip the little guy, the 401k sap that never looks at the market, they also get burned we all do in the end. All except the ones high up on the hog who already got theirs safely stacked down in the Grand Caymans or one of the other special places that cater to the high class criminals. Jim