The problem with the market is the lack of enough brokers to position any meaningful position in any stock. The big 10 brokers wiped out all the small boutique houses and wallstreet turned to derivatives and etfs to raise commissions. They say 50 million people are invested in the market. That is probably 90% in mutual funds. These funds have program selling and have long sold these stocks . They wont buy them below 5 and here we are wondering with so many people in the market how come its down.... This is the concept that politicians don't understand. Imagine sending 10000 people to help during hurricane Catrina... Not enough.. That the problem. The traders are traders we need an investment class to buy and hold the stock to sure up supply. Like any business model if the sales end is limited your business will die. Its an epidemic and not enough doctors. The SEC needs to first allow an immediate hire of brokers and allow some of the old brokers who left the market over the past ten years back in to go out and sell the stock to individual investors.... Limit the supply and watch the demand go higher. Myoffices are always open for new consultants and its amazing how many people get detered by the exams. Lower the bar and hire all the unemployed people to sell stock on commission. Also that Damn do not call list crap needs to be repealed. Nothing has killed the American economy than this thing. It stopped many good businesses from selling needed products. Imagine if GM and Ford closed their plants and got their employees on the phone to sell their stock... I can only dream...
Think about this? If we could empower a new class of salesman then we could have those mortgage brokers start to sell stock. After all if you look at it they sold ice to eskimos. We need better distribution. Its a simple demand and supply curve- 500000 sales people trying to service 1 trillion investors in trouble. The SEC needs a new series 2 that allows these people to take a simple trading class and sell sell sell.... After all how many traders use the information we learned in the series 7 manual. 1933 rules and 1934 rules don't apply. I have never sold a government obligation (GO) Bond. The big boys put the boutiques out of business. Put the Billions of dollars into new boutiques and spread the wealth. This is what happens when you let the market become cornered by the large companies. When they fall they fall big. Look at Etrade they are solvent but imagine if they started calling investors to buy stock. Who in their right mind besides brokers seeking commisions will tell you to buy stock.
Its time to start hiring brokers at minimum wage. I would even be open to coming back to the daily grind to train a few brokers. Its a great opportunity. I may even consider starting a boutique firm. If you can hire some pizza guys and messengers and let them get licensed I think we could make a killing trading other people's money... Hedge Funds exist because they didn't trust Brokers. It was Merdoff's Hedge Fund that scammed the Money not the Brokerage firm. Now with greater transparency we may get back to empowering a strong market.
I used to be a broker many years ago. I was cold calling people my first day on the job while they were watching the news about Iraq invading Kuwait. I worked for that firm for about three months and I quit - without ever opening a single account. I probably set a record for the most calls without a sale. I was on the phone 12+ hours per day, too. About a year later I tried again with another firm, (I was hired by Tony Elgindy, AKA Anthony Pacific), and had the same results, no accounts opened and I quit. You could hire as many people as you want off the street and within a few weeks they will all be gone because they won't be able to raise any money in this market. And I don't think there are any boiler rooms in business any more anyway. There aren't any here in San Diego. I agree, the requirements to be a broker are much too stringent. It took weeks of studying to pass the series 7. I passed on the first try, but a few other new hires did not, and they didn't bother to try again. Requiring people to pass a difficult test to become a broker doesn't deter scammers, which is the reason the NYSE set it up like this.
yes, another inflated stock market is what we need. why stop there how about every one can leverage there money 10 times how bout 20. anything to keep stocks above there real value
I'd say 'Are you fucking kidding me?' but it's clear you're serious. Nothing has killed the US economy more than the Do Not Call list? Man, I've heard some bizarre shit here over the years, but this is a keeper.
In 2002 the market was at 8000 and We watched it rally to 14400 and its the people like this who sat and talked on the sidelines. When the rich got rich all they could do is moan an groan. Whats the difference is you hire brokers to position stock in companies as they restructure. Whats wrong with buying or shorting positions with an increased sales staff. Have you ever had a MUD pie... A pie made of grass and dirt? If you ever seen one then maybe you would get off the high horse and start opening your minD because if Obama messes this up we will be a third world country... I am loving this market because I have been an intraday trader since we broke 12000 which was my threshold to 10500 then again to 8000. So as you near the limits you switch your strategy. I learned from the best and only wish that some young kid could have the same opportunity to make money in a legit manner. The business model of High Society theiving wall street is over. Once the market realizes how easy it is to take 2000 dollars and make a 199k then its over we will be at 12000. The only thing wrong with the market is confidence. As seen here the abundance of pessimism is ever present. C doesn't deserve to be at 2, BAC 4 and so forth. This is where you trade the 1/2 point 10-40% moves and let the profits ride. I WILL STATE IT HERE THAT I AM MAAAAAAKING MOOOONEY HAND OVER FIST AND THATS WHY I AM A TRADER. THIS IS THE TRADERS DREAM MARKET OF A LIFETIME... SHARE THE WEALTH -----HIRE MORE BROKERS LOWER THE BARRIERS....
I ran a telemarketing company a few years ago and that do not call list was a bummer. How can you cold call if you have that list. When that legislation passed it sent many industries to hell. Only the large firms that had big budgets survived. IE anyone from Rochester NY could tell you... If you can't generate a sale how do you expect to generate GDP. When you think about it how many times have you taken advantage of a cold call? Probably never but there are some that have. The telemarketing industry had its time and now the auto industry has its time. I bet when the chinese build out their infrastructure they wont have a telemarketer do not call list. GDP Gross Domestic Product. If you trade without watching those numbers you trade blind. Now here is the bottomline. Anytime you stifle an industry you lower the net inflow and outflow of capital. Buy the book when it comes out..