Many Questions To Think About And Discuss

This blog is about Capital Markets and Social Equity, not about politics (unless it relates directly about the economy and the market) or matters of religion, race, color, ethnicity, sex or sexual orientation.

To get to know one another in this virtual community we often engage in non-argumentative discussions related to music and travel and a few other hobbies. But in doing so, we know why we are here.

I have to point this out because, at times, the Discourse often involves these other matters that have no place in a blog about investing and trading. We need more of you speaking up when you see the Discourse straying from our objectives. After all, we are here to share and learn, and the only reason for some of us to stray is the intention to proselytize others.

There are important matters of equity within capital markets that we need to think about and discuss here. Ones that immediately come to mind are:

(i) Why is there no separate department of government tasked with responsibility for financial fraud investigation and prosecution? If it’s the SEC’s job in the US, why are they so ineffective?
(ii) Why are some principals in capital market trades permitted to ‘independently’ advise and to act as agents for clients in the same trade?
(iii) Why is that individuals who commit relatively minor financial crimes are severely prosecuted, but when major banks commit what appears to be major crimes affecting millions of people, there are deals worked out where the bank pleads no contest and gets off with a minor fine that the shareholders must pay, and then the crimes are allowed to continue?
(iv) Why are certain investment banks permitted to exercise undue control over government and central banks?
(v) Why are some central banks, like the US Fed, not under 100% government control?
(vi) Why are trade associations permitted to self-regulate in matters that affect the interests of the public?
(vii) Why are “dark pools” allowed where some of us, but certainly not all, get access to bids and offers?
(viii) Why is an unfair advantage like “Flash Trading” permitted?
(ix) Why don’t all traders/investors get access to the same financial services as “accredited investors” - to say that a medical doctor or other non-financial professional who practices full-time is more “sophisticated” at financial matters than many of you just on the basis some people earn greater than $200,000 annually is a bloody disgrace.
(x) Why don’t all traders/investors get access to the same data at exactly the same time? The only reason prices are discovered 15 and 20 minutes faster for some than others is to protect the financial interest of a few select vendors and the high powered capital pools who seek an advantage over the public.
(xi) … the list is endless: we live in a culture of corruption as a result of government gone bad as it often does.

Unfortunately, we also live in a world where financial matters and government matters are not fully transparent, and where management control, i.e, ability to direct transactions, has been allowed to supersede the power of the owners of capital who purportedly (but not really) have equity control.

Those of us who have a need to enter into capital market transactions now realize that the servant is the master. Nobody in government is going to tell us why because, in this perverted culture, they too, like corporate directors, have been bought and paid for.

That’s the reason we are here to discuss capital markets and social equity. We are all being impacted and we need to focus on the issues and solve them.

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