"THE MARKET... consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Alexander Elder

Monday, September 1, 2008

Monk of the Month

Your comments,
tips and prognostications.


Charles Longfellow said...

This month starts with a quote from Robert Prechter, of Elliott Wave International:
"The I.R.S. categorizes capital gains as 'unearned income'. That's baloney. It's hard to make money in the market. Every dime you make, you richly deserve."

note: Those following the advice of E.W.I. re gold, would have profitably lightened up at the recent top. Noteworthy.

Phil Davis said...

I guess Barack Obama would fit in well at the IRS. He, as well as a majority of Democrats, thinks capital gains taxes should be doubled because hedge funds are making too much money. Never mind the fact that hedge funds don't hold onto any investment long enough to be subject to them.

Should it be any wonder then why the savings rate in the US is the lowest in the western world?

Now if the IRS was willing to accept a portion of the loss when an investment turns south, then maybe ......

Perish the thought.

eXTReMe Tracker

What is a Bucket Shop?

"Bucket Shop is a specifically defined term under the criminal law of many states in the United States which make it a crime to operate a bucket shop. [2] Typically the criminal law definition refers to an operation in which the customer is sold what is supposed to be a derivative interest in a security or commodity future, but there is no transaction made on any exchange. The transaction goes 'in the bucket' and is never executed. Without an actual underlying transaction, the customer is betting against the bucket shop operator, not participating in the market."
see: Wikipedia

The SEC believes that "internalization" is somehow different, and this affects ALL of your online trading, no matter what you are trading. Trades that are executed outside of the exchange, never reaching the main market, effectively hide data from technical analysis, and skew pricing.
see: Not a bucket?

"... internalization hurts retail customers and market quality"

see: EconPapers

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