"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


Wednesday, November 19, 2008

Worse to Come


How do you spell "Deflation"?
see: About.com:Economics
see also: Roubini





1 comment:

Charles Longfellow said...

The About.com article refers to the money supply being a factor for deflation as that money supply
is reduced. However, other definitions of "deflation", (wikipedia), refer to contributing
factors of decrease in money supply and credit. To what extent is decrease in availability of
credit a contributing factor to deflation? If credit is considered beyond common types to
include leveraged amounts, as per derivatives and other instruments for leverage, (often leveraging
many times over by exotic investment vehicles), could this provide an answer as to why printing dollars has so far not stemmed deflation, and
theoretically may not create inflation until the leveraged credit that is no longer available is offset by new dollars?

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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