Preventing Future "Madoffs"

L

libertad

As I have mentioned in earlier posts....the whole securities exchange is due for an overhaul.....

The interlinking, conflicts, of both the corporate and private side .....have negated the most important element of raising capital for capitalism...."trust"....

Trust is about visibility.....

Confidence that one is not going to be "gamed' by the very firm that one does business with.....ie GS gaming the securities it creates for its own clients, etc...

There are many forms of confidence that need to be rectified.

..............................................................................................

Solution....Visibility....and Liquidity.....

1) Eliminate margin..... all securities...stocks ,, bonds, commodities...
Replace with 1x.2x.3x.4x shares


2) Eliminate hedge funds....and mutual funds....
Covert to $10 par shares.....The $10 share will immediate reflect the value of all holdings....and thus the management capability of the firm.....There can be no further funny games with illiquid securities....

3) Make accounting, reporting, and listing boilerplate with no mysteries....

4) Make available a direct access highway that can transact shares for 20 cents per 100 shares.....All participants have to transact on this highway....

5) Boilerplate timely information....make it available worldwide...with a Google-wiki model.......


Performing the above will make for a transparent , trustworthy venue for all securities.....and will quickly show the value of management....and will eliminate most of the problems of visibility and liquidity.

What will happen will be a grand re-openning of the securities business....which access to the highway via direct access can be granted by any qualified financial firm.....

All available in the currency or language of choice....

It is high time that the "gamers" of the core of capitalism be banished from the system......

Capitalism is too important to the world.....and its innovations.....
 
You have obviously put a lot of thought into this and I have a question. How do you created leveraged retail instruments if managers are unable to use margin/leverage? Stupid question, I know.
 
There would be maximum position size restrictions in accordance with the security involved....ie when oil was gamed by MS and MS capabilities....not reflecting actual demand and supply.....no gaming thinner floats ....without approvals such as buy outs etc...

No minimum/maximum account size.....managers can buy 1x.2x.3x.4x as long as "size" issues are not violated....

The structure is already utilized in some of the ETFs...ie 2x oil...etc...long or short...

Another plus is that managers that perform would be before the world....and anybody can access any security on the exchange....
no longer would stellar management just be for the rich.....

And as you know....stocks will play a major role in the incentive to produce and wealth distribution....

No more restricted stock games....if a manager has confidence in his company....he will own some of his own shares ...with his own money....etc...no backdating stock options etc....

This structure would make worldwide regulation more uniform....and would provide a more trustworthy venue for capitalism.....The more trustworthy the system.....the more capital it will attract......
 
You are not Jim Wales by any chance?


Quote from libertad:

There would be maximum position size restrictions in accordance with the security involved....ie when oil was gamed by MS and MS capabilities....not reflecting actual demand and supply.....no gaming thinner floats ....without approvals such as buy outs etc...

No minimum/maximum account size.....managers can buy 1x.2x.3x.4x as long as "size" issues are not violated....

The structure is already utilized in some of the ETFs...ie 2x oil...etc...long or short...

Another plus is that managers that perform would be before the world....and anybody can access any security on the exchange....
no longer would stellar management just be for the rich.....

And as you know....stocks will play a major role in the incentive to produce and wealth distribution....

No more restricted stock games....if a manager has confidence in his company....he will own some of his own shares ...with his own money....etc...no backdating stock options etc....
More...
 
He certainly has proven the concept....when combining the capabilities of individuals such as this....and those within Google....BATS....Genesis....etc.....

Could totally revamp the securities business model.....

For the better....

The technology allows for this....and will only get better....

Better means...better future....
 
A few years ago a pharmacist watered down chemo therapy drugs and people died as a result. Ban all Pharmacists.

A few years ago a baby food manufacturer watered down apple sauce. Ban all baby food makers.

Quote from libertad:

As I have mentioned in earlier posts....the whole securities exchange is due for an overhaul.....

The interlinking, conflicts, of both the corporate and private side .....have negated the most important element of raising capital for capitalism...."trust"....

Trust is about visibility.....

Confidence that one is not going to be "gamed' by the very firm that one does business with.....ie GS gaming the securities it creates for its own clients, etc...

There are many forms of confidence that need to be rectified.

..............................................................................................

Solution....Visibility....and Liquidity.....

1) Eliminate margin..... all securities...stocks ,, bonds, commodities...
Replace with 1x.2x.3x.4x shares


2) Eliminate hedge funds....and mutual funds....
Covert to $10 par shares.....The $10 share will immediate reflect the value of all holdings....and thus the management capability of the firm.....There can be no further funny games with illiquid securities....

3) Make accounting, reporting, and listing boilerplate with no mysteries....

4) Make available a direct access highway that can transact shares for 20 cents per 100 shares.....All participants have to transact on this highway....

5) Boilerplate timely information....make it available worldwide...with a Google-wiki model.......


Performing the above will make for a transparent , trustworthy venue for all securities.....and will quickly show the value of management....and will eliminate most of the problems of visibility and liquidity.

What will happen will be a grand re-openning of the securities business....which access to the highway via direct access can be granted by any qualified financial firm.....

All available in the currency or language of choice....

It is high time that the "gamers" of the core of capitalism be banished from the system......

Capitalism is too important to the world.....and its innovations.....
More...
 
Well founded point.....know exactly where you are coming from....

However....there is no other industry that the internet has changed so dramatically....as it has the securities business.....

Also ....globalization can be good....if the playing field gets more level....

What we are talking about is a transparent...easy to access and transact marketplace....whereby any intellegent individual should be given a fair shot at either having someone else manage....or perform self management....

One does not have to believe the multi'decade template of buy and hold....one does not have to believe just hold for 2 minutes....

What everyone needs to know is that they do have a fair shot at the game.....and this is everyone....Americans, Chinese, Brits....you name it...in the language of choice....one should not have to jump through hoops to allocate at a moments notice....when the idea strikes...do it.....whether it be US Tbills shifting or the Chinese equivalent....any asset class....any asset size...any country....any language......from any qualified institution.....

The equal access creed along with boilerplate entries and maintenance and policing.....

Will open up capitalism to the world....the likes of which have never been seen.....ie just a mere whiff of a promising innovation that arises from individuals in any country would be instant opportunity without the interference of ¨gaming the system¨middlemen......

The rest is very clear.....

It is going to happen anyway....

People of any origin demand efficiency and a trustworthy system in which to operate and have confidence in.....
 
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