Why did the G20 agree to LESS financial regulation yet claiming to be undertaking more?
Was it all smoke and mirrors to pacify the angry public?
I don’t see the media fully reporting this issue..
On the one hand, they agreed to further regulation of the financial system to supposedly prevent Wall Street types from creating this kind of crisis in future,
yet … THE ABSURDITY OF IT is ….
they also specifically affirmed commit to and agreed to complete the World Trade Organization Doha Round, which mandates FURTHER DE-REGULATION of the kind that allowed the Wall Street bankers to run the ponzi scheme that create the mess in the first place.
See paragraph 23 of the G20 Communique
"23. We remain committed to reaching an ambitious and balanced conclusion to the Doha Development Round, which is urgently needed."
Why isn’t the media reporting this obvious contradiction?
The whole thing is now looking false.. They are scared that the world is about to rebel. Yes the Doha round is still in place and deregulation is the issue.. They must think we are fools. The sooner we kick them out the better.
where to start trading?
which market is best to enter for a nineteen year old u.s. citizen with little money who is new to the financial markets? I am looking to start trading… I am currently studying/learning the u.s. stock market as well as futures and the forex market…. my question is, do you think it would be wise to enter the u.s. stock market to start off and get a feel for things? of course not until i am ready to.
I think drys stock is good imvestment because once the economic market is pick up many different countries will buy more commodities and it will need shipping than the stock will increase.
How does Stock Market affect a company’s balance sheet?
So I know once a publicly-traded-company issues stock, the stock is basically out of its hands, and any future price changes in the stock will not be recorded in the company’s accounting records. So when a stock lowers in value, will that in any way directly affect the company’s financials?
Good answers from Everyone!
it can indirectly affect the company, if they’re looking to make a secondary offering, or if they’re buying back shares.
but there is no direct, inherent link between the market price of the firm’s equity, and their financial statements.
stock exchange and trading book?
hello! i’d like a well-done book, about stock exchange and tradin. I am a university student, and i search for a serious book which explains how stock exchange works, and the financial instruments (derivatives, future, stocks…). It should be not simple, but not impossible (i dont’ want a book only about techniacal analysis..). Thanks a lot, i’ll give 10 points to the best answer!
When I was first learning about the financial markets, I was frightened by the large complex books I saw in Business bookshops. However one book was very easy to read – not too complex or detailed – but intuiative and gave me the foundation I needed to go on and learn more. I cannot recommend it highly enough. It covers the stock markets – and simple equity derivatives such as exchange traded futures and options. It also covers the interest rate markets (repo, money markets, fx, swaps etc.)
It is "The Investors’ Chronicle Beginners Guide to Investment"
I see that they still have an equivalent in print, going for as little as 1p on Amazon for a used copy. There are also a number of other books that specialise they seem to be printing now.
http://www.amazon.co.uk/s/ref=nb_ss_w_h_/202-9468521-8734259?url=search-alias%3Daps&field-keywords=investor%27s+chronicle
Don’t be put off by the "Beginners" bit. It doesn’t stop at the easy and obvious but builds up.
Good Luck – I really enjoyed learning about finance, and I recommend an exciting and profitable career in this sector to you!
What R the ‘political obstacles’ to a CFTC/SEC Merger?
Financial bills take stumbling steps
By Tom Braithwaite in Washington
Published: October 15 2009 01:02 | Last updated: October 15 2009 01:02
Barney Frank, who chairs the House financial services committee, tried to drag two key elements of financial regulatory reform – derivatives and consumer protection legislation – towards passage on Wednesday.
But the chairman faces a difficult task in the next few weeks of shepherding the bills through the committee and past a vote on the House floor.
EDITOR’S CHOICE
Geithner aides made millions on Wall Street – Oct-14
Geithner urges reform after banking rescue – Sep-11
John Gapper: A credibility problem for Goldman – Oct-14
Ex-Bear Stearns officials ‘misled investors’ – Oct-15
Obama calls for 57m to get $250 cheques – Oct-15
Blog: Money supply – Oct-07
Republicans condemn them as an infringement on freedom and some Democrats worry they do not go far enough to constrain risky behaviour.
The regulatory revamp could still pass this year, according to administration officials and leading lawmakers, but differences between and within the parties and with the Senate continue to cast doubt on the timetable and eventual form of the law.
Mr Frank’s committee began marking up a bill to force tougher reporting and trading rules for over-the-counter derivatives that would require more of the instruments to pass through a central clearing house.
“Today’s events indicate that the House has taken major steps toward enactment of this bill and is well on the path toward comprehensive financial reform,” said Michael Barr, assistant Treasury secretary.
The chairman went further than expected, proposing to force a broader category of trades made by big swaps dealers on to exchanges.
But aides were working last night to modify that proposal amid continued concerns over how it would work in practice.
At the same time, Mr Frank and his team sought to respond to concerns of end-users of derivatives, which include airlines hedging against swings in fuel prices, to exempt them from regulatory burdens and the drive towards exchange trading.
“We are going to be driving a lot more business to the exchanges,” said Mr Frank, who said he hoped the legislation would encourage new exchanges to start up in competition with the existing companies.
He supported an amendment that would study whether the Commodity Futures Trading Commission and Securities and Exchange Commission should be merged, though he warned that he considered a merger “impossible politicially”.
A committee vote on derivatives is expected on Thursday when the group of representatives will also mark up a more controversial bill that creates a Consumer Financial Protection Agency to regulate more closely the selling of products such as credit cards and mortgages.
Republicans and some Democrats worry that the legislation could impose an onerous burden of new regulation on diverse businesses that provide credit. “Are we going so far that we’re killing the lifeblood of this country and that is the small businessman and small businesswoman?” asked Gresham Barrett, a Republican from South Carolina, who used to run a furniture business.
Walt Minnick, a Democrat from Idaho, has emerged as a key sceptic, arguing that a council of existing regulators would be better placed to protect consumers. He is expected to vote against the proposal.
Copyright The Financial Times Limited 2009. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.
there are no obstacles.
What R the ‘political obstacles’ to a CFTC/SEC Merger?
Financial bills take stumbling steps
By Tom Braithwaite in Washington
Published: October 15 2009 01:02 | Last updated: October 15 2009 01:02
Barney Frank, who chairs the House financial services committee, tried to drag two key elements of financial regulatory reform – derivatives and consumer protection legislation – towards passage on Wednesday.
But the chairman faces a difficult task in the next few weeks of shepherding the bills through the committee and past a vote on the House floor.
EDITOR’S CHOICE
Geithner aides made millions on Wall Street – Oct-14
Geithner urges reform after banking rescue – Sep-11
John Gapper: A credibility problem for Goldman – Oct-14
Ex-Bear Stearns officials ‘misled investors’ – Oct-15
Obama calls for 57m to get $250 cheques – Oct-15
Blog: Money supply – Oct-07
Republicans condemn them as an infringement on freedom and some Democrats worry they do not go far enough to constrain risky behaviour.
The regulatory revamp could still pass this year, according to administration officials and leading lawmakers, but differences between and within the parties and with the Senate continue to cast doubt on the timetable and eventual form of the law.
Mr Frank’s committee began marking up a bill to force tougher reporting and trading rules for over-the-counter derivatives that would require more of the instruments to pass through a central clearing house.
“Today’s events indicate that the House has taken major steps toward enactment of this bill and is well on the path toward comprehensive financial reform,” said Michael Barr, assistant Treasury secretary.
The chairman went further than expected, proposing to force a broader category of trades made by big swaps dealers on to exchanges.
But aides were working last night to modify that proposal amid continued concerns over how it would work in practice.
At the same time, Mr Frank and his team sought to respond to concerns of end-users of derivatives, which include airlines hedging against swings in fuel prices, to exempt them from regulatory burdens and the drive towards exchange trading.
“We are going to be driving a lot more business to the exchanges,” said Mr Frank, who said he hoped the legislation would encourage new exchanges to start up in competition with the existing companies.
He supported an amendment that would study whether the Commodity Futures Trading Commission and Securities and Exchange Commission should be merged, though he warned that he considered a merger “impossible politicially”.
A committee vote on derivatives is expected on Thursday when the group of representatives will also mark up a more controversial bill that creates a Consumer Financial Protection Agency to regulate more closely the selling of products such as credit cards and mortgages.
Republicans and some Democrats worry that the legislation could impose an onerous burden of new regulation on diverse businesses that provide credit. “Are we going so far that we’re killing the lifeblood of this country and that is the small businessman and small businesswoman?” asked Gresham Barrett, a Republican from South Carolina, who used to run a furniture business.
Walt Minnick, a Democrat from Idaho, has emerged as a key sceptic, arguing that a council of existing regulators would be better placed to protect consumers. He is expected to vote against the proposal.
Copyright The Financial Times Limited 2009. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.
there are no obstacles.
ETrade Financial, it was 23 per share earlier this year, and bottomed out at around 3.40 per share. I just wan
ETrade Financial, it was 23 per share earlier this year, and bottomed out at around 3.40 per share. I just wanted to get some second opinions on what the future of this company is going to be. I am a member of Etrade and trade stock within the online brokerage. but am not too sure about investing in it. Say they did file bankruptcy would I lost all my money in my etrade account? Also do you think this company is going to recover? Is it smart to buy stock in it? Also, if it does recover how long would it take for it to take back off? Thanks guys.
I woke up that morning it was down like $9 and trading at $3.40. I could not get out of bed fast enough and bought it at $3.48. I sold it three days later at $5.80!!! Now that was a GOOD trade.
I think E-Trade will be ok long-term. No, you won’t lose any of the money in your account should they go bankrupt. I personally think someone will buy them.
If you want to buy the stock, buy it on a down day and sell it a few days later or just hold it. I think it will eventually get back to the teens one day.
Erik
What is the difference between futures and options in financial lingo?
I’m interested in learning more about these two forms of financial trading. thanks for some solid info including definitions, possible websites? Thank you.
Both are standardized contracts that can be traded. They would give you the right to buy and sell a stock or delivery of commodities (grains, fruits, etc.). This is why they call them "derivatives". Both instruments are considered risky and may not be suitable for the novice.
Options: the right to buy (or sell) a stock (or any other financial asset) at any time, before the expiration date. At is inception, it sells (or can be bought) for little, compared to te actual stock price on thecontract. As expiration approaches, its price may rise.
Futures: the right to deliver (or receive delivery) a commodity at a specified date. The price paid is a guaranteed. In this fashion, the farmer knows what he/she will make. So do the manufacturer or retail store. To them, futures is a hedge intrument.
But to many others, futures is a very speculative market. People without any farm (or business at all) create these contracts, as if they actually owned a business. They can’t ever deliver or take delivery, because they are just speculators sitting ata a desk. Some sell this contracts to "farmers", giving them a guaranteed price, but hoping the price of grains goes up to flip it (that is, turn aroud and sell it to a true buyer of the commodity, like a supermarket). Others sell a delivery contract the the supermarket, but really are speculators who are lloking for the price of the commodity to fall. They would buy the grain at the recently fallen price and deliver them to the supermarket. (in reallity, they would flip this contract in the trading market).
Hope this helps.
How do you think "most profound financial change in recent Middle East history" will hurt the U.S. economy?
Seriously, wouldn’t the value of the dollar crash rather quickly if Middle Eastern countries stopped using the U.S. dollar to trade oil??
http://news.yahoo.com/s/afp/20091006/bs_afp/commoditiesgoldmetalsprice
Barclays Capital precious metals analyst Suki Cooper said dollar weakness appeared to be related to reported secret talks about oil being priced in a basket of currencies including gold rather than the dollar,
This "has added to concerns about the future role of the dollar in international financial markets," Cooper said.
The dollar’s future as the world’s top currency was thrown into doubt on Tuesday as a report said Arab states had launched secret moves with China and Russia to stop using the greenback for oil trading.
Arab states have launched steps with China, Russia, Japan and France to stop using the dollar for oil trades, British daily The Independent reported on Tuesday, but the report was denied by Kuwait and Qatar and reportedly by other nations.
The Independent’s Middle East correspondent Robert Fisk wrote in his paper: "In the most profound financial change in recent Middle East history, Gulf Arabs are planning — along with China, Russia, Japan and France — to end dollar dealings for oil."
This will hurt our economy b/c of higher interest rates. Most of the dollars held by foreign governments are in the form of relatively safe US government securities (Treasuries). When inflation hits, those securities are worth less, and when the dollar decreases in value via selling, Treasury securities are worth less. So, as the demand for our debt decreases, interest rates rise. Higher interest rates result in lower private sector investment hurting our economy. In addition, inflation will cause a decrease in consumer spending, hurting our economy further.
This news release is being denied by all involved, which is typical of any government to do when dealing with currency markets. We deny things like this and so do they. So I think there’s alot more to this report than just rumor. In fact, it makes logical sense that they’d want to dump the dollar with all of this massive spending, printing and borrowing by our government.
How do you think "most profound financial change in recent Middle East history" will hurt the U.S. economy?
Seriously, wouldn’t the value of the dollar crash rather quickly if Middle Eastern countries stopped using the U.S. dollar to trade oil??
http://news.yahoo.com/s/afp/20091006/bs_afp/commoditiesgoldmetalsprice
Barclays Capital precious metals analyst Suki Cooper said dollar weakness appeared to be related to reported secret talks about oil being priced in a basket of currencies including gold rather than the dollar,
This "has added to concerns about the future role of the dollar in international financial markets," Cooper said.
The dollar’s future as the world’s top currency was thrown into doubt on Tuesday as a report said Arab states had launched secret moves with China and Russia to stop using the greenback for oil trading.
Arab states have launched steps with China, Russia, Japan and France to stop using the dollar for oil trades, British daily The Independent reported on Tuesday, but the report was denied by Kuwait and Qatar and reportedly by other nations.
The Independent’s Middle East correspondent Robert Fisk wrote in his paper: "In the most profound financial change in recent Middle East history, Gulf Arabs are planning — along with China, Russia, Japan and France — to end dollar dealings for oil."
This will hurt our economy b/c of higher interest rates. Most of the dollars held by foreign governments are in the form of relatively safe US government securities (Treasuries). When inflation hits, those securities are worth less, and when the dollar decreases in value via selling, Treasury securities are worth less. So, as the demand for our debt decreases, interest rates rise. Higher interest rates result in lower private sector investment hurting our economy. In addition, inflation will cause a decrease in consumer spending, hurting our economy further.
This news release is being denied by all involved, which is typical of any government to do when dealing with currency markets. We deny things like this and so do they. So I think there’s alot more to this report than just rumor. In fact, it makes logical sense that they’d want to dump the dollar with all of this massive spending, printing and borrowing by our government.