Reply to: Shorters in BIG trouble !!!!

[aceboy]

This action should be world wide - USA/UK/EU - no exchange should be allowed to operate differently and no company that wants to have business in those countries should be allowed to take part in any offshore exchange that would circumvent those rules.

Blimey you cant even get the US to quote in decimal, so I dont see any chance of them agreeing to worldwide complaince! Who would "polcie" this & set the rules??

Many "businesses" in the City would go bust of course since all they do is parasite on free market, my heart won't bleed for them.

The knock on effect will be immence, I have a friend who owns a sandwich business in the sq mile. he is really suffering in the current climate, he is trying not let let staff go, but he may have to....how many businesses rely on the office workers? Pubs, dry cleaners, newsagent.......in fact all of them!!! What will they do? Sign on?

You guys think that what I suggest is crazy but so were thoughts of Govt taking over huge private banks or even thoughts of Lehman going down - Enron resulted in Sarbanes Oxley, this crisis is by far bigger than Enron and conclusions from it will be equally bigger.

Sarbanes Oxley.....no comment

The City is doomed - if you work there I'd recommend starting plan B right now.

But there will be no work so plan c, d & e are all screwed......you should joing the police as crime will be rife, but then the gvnt wont be able to pay you....

[HairyArsedBloke]

...It would kill speculation - people who get paid ridiculous money to sell shares only to buy them back 5 minutes later in order to make some money then repeat it big time...

That's done it for me. Hold a position for over 5 mins - nah, me nerves won't take it. My record for the shortest holding of a position was 7 seconds.

[Emigre]

The City is doomed - if you work there I'd recommend starting plan B right now.

Glass half empty

We are contractors on this site. We are engaged ultimately by whoever needs our skills and are prepared to pay the price. The inability of the regulators and the City to pick up the system risks created by the sub prime crisis will spawn further work from those banks and institutions that survive, both in terms of integration projects, next generation risk systems and improvements to control processes. Basel 3 will follow soon after.

The banks that survive will be bigger and stronger. There will not be as much competition so they will not need to invest in cr*p loans to improve their shareholder value or increase bonuses. Who's going to pay for all that? The man on the street.

[ChimpMaster]

This action should be world wide - USA/UK/EU - no exchange should be allowed to operate differently and no company that wants to have business in those countries should be allowed to take part in any offshore exchange that would circumvent those rules.

Many "businesses" in the City would go bust of course since all they do is parasite on free market, my heart won't bleed for them.

You guys think that what I suggest is crazy but so were thoughts of Govt taking over huge private banks or even thoughts of Lehman going down - Enron resulted in Sarbanes Oxley, this crisis is by far bigger than Enron and conclusions from it will be equally bigger.

The City is doomed - if you work there I'd recommend starting plan B right now.

ATW I am in awe of your ignorance. You obviously have very little understanding of financial markets and of their impact on virtually every facet of your life.

[ratewhore]

I seem to recall shorting is borrowing a given asset and selling at todays price hoping the price will go down and you can then rebuy and cash out.

Given that the above is correct, where do you 'borrow' the asset from?

[AtW]

It would also lead to a lot of businesses moving away from both London & the london markets. Do you think this would be good?

This action should be world wide - USA/UK/EU - no exchange should be allowed to operate differently and no company that wants to have business in those countries should be allowed to take part in any offshore exchange that would circumvent those rules.

Many "businesses" in the City would go bust of course since all they do is parasite on free market, my heart won't bleed for them.

You guys think that what I suggest is crazy but so were thoughts of Govt taking over huge private banks or even thoughts of Lehman going down - Enron resulted in Sarbanes Oxley, this crisis is by far bigger than Enron and conclusions from it will be equally bigger.

The City is doomed - if you work there I'd recommend starting plan B right now.

[aceboy]

Last post for some time.



It would kill speculation - people who get paid ridiculous money to sell shares only to buy them back 5 minutes later in order to make some money then repeat it big time. I am fine with those people losing their jobs en masse - that will be best for the market.

If you don't believe that some shares are worth it - don't buy them at all. If you believe that at some price point shares are worthy long term (dividends, sales growth etc) then keep them. It's simple really.

This obvious idea will certainly result in a lot of financial people losing their jobs, as well as techs who support them, but it is necessary to avoid negative influence of these people - if they just fked themselves over then I'd be okay with it, unfortunately they also fk over everyone else who does not even want to be involved in these games.

It would also lead to a lot of businesses moving away from both London & the london markets. Do you think this would be good?

[AtW]

Last post for some time.

but would kill liquidity & the free market concept.

It would kill speculation - people who get paid ridiculous money to sell shares only to buy them back 5 minutes later in order to make some money then repeat it big time. I am fine with those people losing their jobs en masse - that will be best for the market.

If you don't believe that some shares are worth it - don't buy them at all. If you believe that at some price point shares are worthy long term (dividends, sales growth etc) then keep them. It's simple really.

This obvious idea will certainly result in a lot of financial people losing their jobs, as well as techs who support them, but it is necessary to avoid negative influence of these people - if they just fked themselves over then I'd be okay with it, unfortunately they also fk over everyone else who does not even want to be involved in these games.

[aceboy]

Shorting should have been made illegal many years ago.

Also minimum 24h delay on buy/sell orders. That would deal with speculants.

HTH

but would kill liquidity & the free market concept. People would move from the list to the OTC market. Because the underlying's would still be link the price would still drop......would not really solve anything.

[SantaClaus]

Got to say whoever opened that massive short on HBOS at 1quid earlier has been stung. Theres going to be an investment team somewhere ready to hang themselves.

Especially if they are hanging on hold for the dealing desk at IGIndex

[snaw]

Hitler was also working very hard. Lenin and Stalin too. Working hard is therefore not exactly the main indicator. The world have been better off if all City boys were on indefinite garderning leave, at least this way the only thing they would fk up going to be their own gardens, which is a pity in a way but at least their negative impact would be limited.

Sorry, you're equating financial workers with Hitler and Stalin?

I give up.

[AlfredJPruffock]

I don't have problem with bank owners. I bank with LTSB and I was pleased to observe they were very conservative with those subprime games - bank should not engage in this crap, the sole role of the bank should be to keep money safe.

However whoever robs the bank and clients by exploiting their position of being bank owner should get far more years in jail than some bog standard bank robber trying it on a local branch.

Yes - I agree with you there.

[AtW]

So who is the biggest criminal - he whom would rob a bank - or he whom would own a bank ?

I don't have problem with bank owners. I bank with LTSB and I was pleased to observe they were very conservative with those subprime games - bank should not engage in this crap, the sole role of the bank should be to keep money safe.

However whoever robs the bank and clients by exploiting their position of being bank owner should get far more years in jail than some bog standard bank robber trying it on a local branch.

[AlfredJPruffock]

No bank should have bet so much on single thing - that's criminal bank management for which I expect to see some of Lehman Brothers to go to jail for -!

So who is the biggest criminal - he whom would rob a bank - or he whom would own a bank ?

[AtW]

I know a fair few people who do front office, traders, IB etc. Traders I can take or leave, but the IB people especially work harder

Hitler was also working very hard. Lenin and Stalin too. Working hard is therefore not exactly the main indicator. The world have been better off if all City boys were on indefinite garderning leave, at least this way the only thing they would fk up going to be their own gardens, which is a pity in a way but at least their negative impact would be limited.

Some people in that org made a call to bet on the sub-prime market, and everyone suffered - the majority paid the prices.

No bank should have bet so much on single thing - that's criminal bank management for which I expect to see some of Lehman Brothers to go to jail for - the whole point of bank business is to diversify, not only they bed the farm on essentially one thing, they also heavily leveraged so tha they bet 10 (!) farms of even more, they did that to increase profits from leverage, from the money they never had, but now losses are catching up with them so they are getting far bigger loss than they could have possible handled. How the fk this kind of bet got past risk control? I tell you how - they got short term huge bonuses and they knew they would not go to prison for stuff liek this. Well, I sure hope they were wrong about the last one!