August 15, 2009

Bernanke and Regulating Gambling in the Equity Markets

Understand that the futures show 70% chance that Bernanke will be reappointed. The experts seem to say that Obama would want someone else -- but the market believes it understands Bernanke and would "punish" Obama, itself? if a change were made. Particularly with the likely and "unpredictable" Mr. Summers.

Well, Mr. Bernanke put out all the stops (and creatively too) to pump money into his sphere of financial industry players. Clearly another bubble is being created. And this whole monetarist economics is really the "lazy man's economics" -- just push a button on the computer, lower rates, give money to financial institutions, and hope there is trickle down to the economy. Historically, just created bubbles and allowed the financial institutions to pay big compensation to their management, a lot of perks, and, of course, lots of money to traders that take bit bets with other peoples' money.

And if I may concur with those that say the equity markets is very similar to horse racing and other gambling endeavors. I think I might actually vote for similar regulations -- and even have some qualifications for people to bet in the markets (and usually lose money). That would include retail and fund managers.

My favorite -- mezzanine market. Especially in developing markets, the focus of capital investment and trading should be on CBs etc.


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