This is a "disgraced crypto CEO?"

[fncceo]

Do you have an opinion on federally-insured Crypto bank failures?

I am, in principal, against any type of federal insurance for businesses.

Government backed investments issued by private institutions have led to several financial crises in the decades since The Great Depression, causing the very thing they were meant to prevent.

The S&L failures of the '80s and '90s and the housing market collapse of the early 2000's are just two examples of where government backing simultaneously encouraged financial institutions to take unacceptable risks while giving consumers a false sense of security that their investments were safe.

When it comes to any type of financial investing, it is ultimately the responsibility of the investor to perform the due diligence when it comes to where they put their money and to examine the fundamentals of any investment they make.

Two old, and wise, precepts apply here:

Caveat Emptor and

"If something sounds too good to be true, it is."

 

[Toddsterpatriot]

Right.
It had to do with Wall Street corruption.

Awesome!

So whine about that after you explain the problem with dark pools.

 

[georgephillip]

Government backed investments issued by private institutions have led to several financial crises in the decades since The Great Depression, causing the very thing they were meant to prevent.

What about the (Republican) Great Depression?
Was that looting also a result of too much regulation?

 

[georgephillip]

The S&L failures of the '80s and '90s and the housing market collapse of the early 2000's are just two examples of where government backing simultaneously encouraged financial institutions to take unacceptable risks while giving consumers a false sense of security that their investments were safe.

When corrupt S&L CEOs like Charles Keating were using accounting fraud to massively overstate earnings thereby triggering a huge bonus to themselves, was government deregulation to blame?

 

[Toddsterpatriot]

Charles Keating were using accounting fraud to massively overstate earnings thereby triggering a huge bonus to themselves

How huge was his fraudulent bonus? Link?

 

[georgephillip]

Awesome!

So whine about that after you explain the problem with dark pools.

As Markets Plunged in March, Dark Pools Upped their Trading in JPMorgan’s Stock

"On June 2, 2014, to stem public outrage over claims of rigged markets, FINRA, the self-regulator and good buddy of Wall Street that conducts Wall Street’s private justice system, began to report publicly the three-week old trading data from the Dark Pools.

"But instead of providing daily reports with execution times for stock trades included, the data is lumped together for the entire week.

"That’s makes it a lot harder, if not impossible, to see if there is collusion happening by a banking cartel."

 

[Toddsterpatriot]

"That’s makes it a lot harder, if not impossible, to see if there is collusion happening by a banking cartel."

Dark pool collusion? LOL!

So tell me, what's the problem with dark pools?

 

[georgephillip]

Dark pool collusion? LOL!

So tell me, what's the problem with dark pools?

Collusion.
Fool.

 

[Flash]

Got any pics of that interspecies turtle porn?

There are actually nude pictures of the ugly little bitch on the Internet.

 

[Toddsterpatriot]

Collusion.
Fool.

Who is colluding? Post your evidence. Comrade.

 

[fncceo]

Collusion.
Fool.

Collusion: non-competitive, secret, and sometimes illegal agreement between rivals which attempts to disrupt the market's equilibrium

Dark Pools are set up to do precisely the opposite. It allows large, institutional investors, to make large trades without disrupting market equilibrium.

A large pension fund (by far the most numerous type of institutional investor) wants to buy or sell a million shares of a particular issue. That kind of large trade, while insignificant to the pension funds overall holding, would make a considerable ripple in the the market in which it was traded.

Dark pools allow large investors to make the trades they need to make without upsetting the overall markets.

Also, Dark Pools lack of competition in the pool can work both for or against the traders. Because the trade isn't done on market, the seller will have to pay whatever the buyer demands. The buyer can demand well below market rates.

Dark Pools aren't secret, nor are they illegal. They are, in fact, registered and regulated by the SEC. Trades within Dark Pools are recorded.

 

[fncceo]

... was government deregulation to blame?

No. In fact, government regulation / subsidies. to Institutional investors is to blame.

Offering FDIC on bank customer's savings give the customer a false sense of security and gives the bank the assurance that, even if they make horrendously bad investments, they will be bailed out if they do the wrong thing.

For decades, banks and savings and loans in America operated on a very simple, non-competitive, and, stagnant policy --- the 3-6-3 rule.

Pay out 3% on savings. Lend money at 6% interest. Be on the golf course by 3pm.

Post-depression government regulations make it very difficult for banks to compete with each other. In fact, banking in America became a government mandated cartel. With every bank offering the same product at the same price.

When banks and S&Ls became competitive in the 1980's, they were able to offer their customers better rates of return, more competitive rates on lending, and a wider range of products. But, with that good, came the bad. More competitive investments mean larger chance of risk in the portfolio. You can't offer 18% on bond investments and still expect FDIC security on deposits.

Any prudent investor would have been asking:

Why are banks and S&Ls holdings include huge tracts of West Texas land valued at many times market prices?
Why were banks and S&Ls holdings including millions of dollars of art works at unverifiable values?
Why were banks and S&L now operating out of palatial office blocks that would be gaudy in Las Vegas and bankers flying around in Gulfstreams as opposed to business class on United?

All of these facts were public knowledge at the time.

But, the government continued to tell everyone that banks and S&Ls were safe and they were on top of everything ... don't worry. And the banks and S&Ls were assured by the government that FDIC would cover their depositor investments if things went bad.