"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

Thursday, January 15, 2009

When Good Money went Bad

see: Hyperinflation


pupkinus said...

Trust me, hyperinflation even in its most dire form would be a great way to get out of this economic mess! Even on a personal level it is relatively easy to hedge and it will free millions of people from their slavery to debt.
I fear deflation, Charles... this could get nasty

by the way, check my blog for my view on trading themes for 2009. I would very much appreciate your opinion

Charles Longfellow said...

The advice to keep one's powder dry, and wait for bargains down the road seems a comfortable, longer term strategy when in the sands of deflation, and may well prove best for hedges like gold and silver. That is to say, buy low and sell high. How do we do that, and why do I feel like I am writing an astrological column? I'll visit your blog and check out your themes for the year.

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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