Leading investor: Entire World in a Stock Market Bubble, Waiting to Burst

[Toro]

What is with the new stock market created for just the ultra wealthy?

have you heard of that Toro?

I'm not sure I understand.

 

[Truthmatters]

Ill try to find the article

 

[Truthmatters]

http://cryptogon.com/?p=777

 

[Truthmatters]

http://tinyurl.com/29z3yy

 

[Truthmatters]

I think I may have stumped Toro?

 

[Toro]

No, I was just tired and went to bed.

This would be an exchange for sophisticated investors primarily in private companies. There are all sorts of markets where this is the case already, private equity, derivatives, etc. This market appears to be one that would bring liquidity to the private equity market. It looks like a good idea.

Most of the funding would come from large institutions, i.e. pension funds, college endowments, charitable foundations, etc., where the recipients or benefactors are usually the average middle class person.

 

[Truthmatters]

"Now Goldman is turning that franchise on its head, creating its own private system to trade the stocks of companies that don't want the scrutiny and regulatory burdens of going public."

http://tinyurl.com/29z3yy


Dont want the scutiny added with billions of dollars?

Doesnt sound very good for democracy to me?

 

[Toro]

Many capital markets are already outside the regulatory bodies. They always have been.

In the US, regulation was designed to protect the little guy, not the big guy. People with lots of money are deemed to be sophisticated investors. Markets for sophisticated investors have less regulation than broader markets.

 

[loosecannon]

You're being silly.

At the risk of being narcissistic, I'm posting this from my blog because its probably too much to post elsewhere and it is more condensed than the World Bank information.

Link

Globalization is improving the lot of the world.

free markets void a world reserve currency would serve 90% of the world better.

Globalization just forces nations economies to be export based so they can acquire the reserves to buy commodities.

Commodification is evil. IMO. Commodification of labor esp so.

 

[Truthmatters]

Many capital markets are already outside the regulatory bodies. They always have been.

In the US, regulation was designed to protect the little guy, not the big guy. People with lots of money are deemed to be sophisticated investors. Markets for sophisticated investors have less regulation than broader markets.

Their VAST wealth is all the protection they need history has proven this over and over.

We are headed for another ruling class

 

[Toro]

Their VAST wealth is all the protection they need history has proven this over and over.

We are headed for another ruling class

Their vast wealth is all the protection they need. That is the point with omitting them from specific types of securities regulation. But that doesn't mean the companies are not subject to any regulation. Just securities regulation. That has always been the case.

 

[Truthmatters]

This will allow movements of Vast amounts of assests without puplic knowledge of what is taking place.

This will not help us retain our fragile Democracy.

The wheels of the power of wealth will be much harder to decifer and protect our selfs against.

 

[no1tovote4]

Fragile "democracy"? You mean strong democratic republic. At least I would assume that is what you would mean as that is what we actually enjoy the benefits of.

 

[Truthmatters]

Look up the word Democracy and you will find a representive republic is a type of democracy.

There is NOTHING wrong with calling what we have here a democracy.

Now go look at what our founders said about it being fragile.

As Benjamin Franklin departed the Constitutional Convention, he was asked if the framers had created a monarchy or a republic. "A republic," he famously replied, and then added, "if you can keep it."

 

[onedomino]

The Dow is simply a measure of stock market activity...

You're absolutely right; the Dow has no bearing whatsoever on economic strength.

The DJA is a measure of financial investment in the companies that make up the composite index. It is therefore a measure of confidence in the future of those companies, their ability to reward investors, and how they will perform in the US economy. When the DJA increases, it is a positive reflection of the health of the economy and investor confidence.

 

[loosecannon]

The DJA is a measure of financial investment in the companies that make up the composite index. It is therefore a measure of confidence in the future of those companies, their ability to reward investors, and how they will perform in the US economy. When the DJA increases, it is a positive reflection of the health of the economy and investor confidence.

Bullshit. When the dollar goes down stocks rise in price reflecting a net zero value shift.

The composite prices of stocks is also a measure of the relationship between total funds invested in the market and the number of stock shares in that market.

For example pass a law that gives tax credits to investors who buy stock and the price of stocks will rise in a reflection.

The DOW has little relationship to the health of either companies or the nation. It reflects competition or lack thereof of dollars for stock shares. Little more.

For example the DOW has actually been cold for 6 years while virtually all other asset classes have experienced meteoric increases.

People have little confidence in the stock market as an investment. But they have larger than life confidence in Hedge funds and derivatives. And stocks can not offer the same returns.

 

[loosecannon]

This will allow movements of Vast amounts of assests without puplic knowledge of what is taking place.

This will not help us retain our fragile Democracy.

The wheels of the power of wealth will be much harder to decifer and protect our selfs against.

All of that is already rampant. Hedge funds and private equity firms move vast quantities of currencies around all the time without much public knowledge. And the FED no longer releases M3 data.

And then there are central banks and first tier brokerage banks like JP Morgan who are bohemoths compared to hedge firms and private equity firms.

 

[no1tovote4]

Look up the word Democracy and you will find a representive republic is a type of democracy.

There is NOTHING wrong with calling what we have here a democracy.

Now go look at what our founders said about it being fragile.

As Benjamin Franklin departed the Constitutional Convention, he was asked if the framers had created a monarchy or a republic. "A republic," he famously replied, and then added, "if you can keep it."

And we have. And will continue.

There is nothing wrong with pointing out that it is a representative republic either, other than it ticked you off... Well that was a bonus too.



Anyway, being unnecessarily alarmist is something your side was accusing somebody else of recently. Our nation is strong, even with negative political discourse.

 

[loosecannon]

There is nothing wrong with pointing out that it is a representative republic either

Except that it is redundant to do so. Representative governments are republics.

Would a democratic democracy sound as stupid to you?

 

[onedomino]

Bullshit. About as articulate and rational as the rest of your response. When the dollar goes down stocks rise in price reflecting a net zero value shift.

The composite prices of stocks is also a measure of the relationship between total funds invested in the market and the number of stock shares in that market. Your point is what? Your statement in no way negates or even pertains to the point I made in my post above..

For example pass a law that gives tax credits to investors who buy stock and the price of stocks will rise in a reflection. So what? Do you seriously think that the price of a stock is significantly influenced by tax credits? How was your trip to crazy town? Stock prices are most influenced by company performance in the market place, i.e., profitability.

The DOW has little relationship to the health of either companies or the nation. It reflects competition or lack thereof of dollars for stock shares. Little more. Look at the price of automobile manufacturing stocks, or airline stocks, or Microsoft, or Oracle, in relation to the health of those companies, to see the sheer stupidity of that statement. For example the DOW has actually been cold for 6 years while virtually all other asset classes have experienced meteoric increases. There are plenty of people and organizations that have made huge money in the stock market since its recovery from 911. Where have you been? For example I bought Lockheed Martin prior to when they obviously were going to win the JSF competition with Boeing. That tripled my money. Guess that must be one of your examples of a "cold" Dow component.

People have little confidence in the stock market as an investment. But they have larger than life confidence in Hedge funds and derivatives. And stocks can not offer the same returns.

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