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E.Central MN | I was going to comment on some of the posts, but its all turned into a mostly feel good bash the govt tirade that has nothing to do with the stock market. Fact is the stock exhanges aren't public governmental entities, they're privately owned. They are regulated, but they set the rules. And there's no rule to stop people from writing more options than there are shares of stock, same thing with the commodities. Why, because the exchanges make money each time a trade is made. This isn't the first time someone has been cornered and lost a ton of money, the Hunt brothers tried to do it in the silver market and there was so much public pressure that the exchanges changed the rules. Was that fair to the Hunt brothers, no, but that's the way the markets work. It's kind of a thin line between all out anything goes capitalism and too much interference by the govt which limits profits, and that causes investors to take their money elsewhere. Then people are left to complain that they can't make any trades in or out because there's no liquidity in the market. Yes, there are large entities in the various markets that have a bit of sway about the way things are run, sometimes they are the reason there actually is an established market especially in stuff that is thinly traded like penny stocks or what are called white sheet stocks(at least I think that's the term). The Republicans like to get on a stump and shout about how vile the markets can be, but they're also the same people who do everything in their power to eliminate any govt oversight. Is that just a coincidence? | |
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An editorial from Josh Hawley on markets.
