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You misunderstand. Your mistaking it for a leveraged fund is not the issue. The issue is that you are still insisting that there's nothing wrong with it as a long term hold. Being short or leveraged is not why it's bad. It's bad because it tracks daily returns which doesn't help over long periods.

As am I glad to see that you're so convinced that you do. Why don't you make the case for why SEF is good for an indefinite bear on financials, where as the fund is tracking (-daily performance).

Glad to see that you still don't get it.

First, SEF doesn't expose the holder to leverage, although it's sensitive to volatility. Second, as I explained in my original post, SEF tracks the *daily* returns (inversely), making it a poor long term instrument. Hence if you want to sit and wait for the eventual collapse of one or more of...

Good point, in fact we should all start referring to it as a "Fine". Change the language now and get this into the consciousness of people because that is what this is, it's a fine for participating in the open capital markets. Ask your friend's and family how they feel about the new fine...

SEF is not appropriate since it seeks to correspond to the daily performance of the Dow Jones U.S. Financial Index, and thus the long term performance will be the result of each day's returns compounded over the holding period. Is there an ETF that tracks a similar basket of securities...

True, the more the better. I'm just saying I wouldn't count that as some kind of bell weather. But glad to hear about NC. There are a few prop firms down there though, plus Bank of America, so that's also not totally surprising.

Look at where they're from, Chicago and NY. It would be political idiocy on their part to go along with this tax. I want to see principled Democrats (do they exist anymore?) stand up against this tax, and be against it in districts in Iowa and Nebraska. Sometimes leadership means educating your...

Everyone hopes you're right. But I disagree that the market is pricing a failure in Congress. It's a bubble due to ZIRP and the result is reflation of assets everywhere, including US Equities. The Dow/S&P currently have little to do with Congress.

I don't know how to tell folks this but Obama on a personal ideological level would shut down Wall Street tomorrow if he could do so without the political fallout. So if you're saying that he'd make a political calculation that signing this tax into law could hurt his re-election chances, then...

This is the problem with one party controlling all three branches by such a wide majority. If the Republicans controlled even one branch, this tax would not even be on the table. But because of the complete control the Democrats can throw this on the table and let it sit and fester for months...

Which just means that there is more skin in the game around the world than just China and the US. That doesn't mean it will go on forever.

I realize that is the textbook answer. But has it always been true, and would it be true *this time*?

Sorry, that should have read *deflationary* period. What you said makes perfect sense and I believe is well agreed on for an inflationary period. But what of massive deflation, which many believe will happen after a debt collapse, and prior to hyperinflation.

Do we really have deflation now? http://www.shadowstats.com/ In any case, I'm talking about much more severe cases of deflation.

Seems like gold too would experience significant corrections in a turbulent inflationary period in the U.S. True or false?

Who cares if oil and gas were there "before". "Before" there was not the same level of global demand, i.e., BRIC.

Yeah, and I mean who minds it when you're pregnant and there are no beds for you in Canada. All good right? Yeah, Palin's an idiot, bla bla bla.. Zzzzz. Pathetic.

It has to not only be stopped, but it has to be removed from being even the remotest of fantasies. The only way to do that is to contact your representative, vote against anyone who doesn't issue a clear and unequivocal denouncement of this type of tax, and tell everyone you know about it...

No. That would be an absolutely absurd thing for any one industry (relatively small) to be pursuing,. The only "industry" behind this is the government. Period. Tthe statists of both parties, but mostly the controlling one, saw the last election as a mandate to absolutely do whatever the hell...