With the economy in a near stalled state, and with Downtown New York almost decimated, do we really need the SECs "Pattern Day Trader" Rule? Aren't things bad enough as it is with very little volume and volatility? I think its time to speak up against the SEC and try to get this rule reversed. Some of the most brightest and accomplished organizations and people in the World Trade Center with regards to economics are in state of collapse or retardation. The WTC incident will most likely have an effect on the economy and trading, and the PDT rule is being materialized in the worst time ever conceivable. What kind of financial markets will there be with no one left to participate? At 9 AM, the WTC complex is occupied by approx. 40-50 thousand people. There is no data as to how many people have died, or are beyond the scope of returning to a normal life. No one knows the implication of this yet and its effect on trading and the economy at large. In light of this and everything else, the PDT rule is ridiculous and makes no sense. Isnt there something we can do about it?
The SEC has more important things to deal with right now. They need to get the markets back in order. That's a big deal. It is a much higher priority than overturning the PDT. They might postpone the PDT but I doubt they will overturn it. MGB
Just a thought, and maybe i am wrong, and maybe this is a bad time to discuss this, but wouldnt overturning the 25k rule also help the economy because it allows more earnings and spendings, the very foundation of our system. And with today's tragedy in the WTC, meaning that there are less resources, money, and people in the markets, wouldn't the stopping or delaying of the 25k rule actually help things. The timing, occasion, or place to discuss something like this might be off on my part, but it is a reaction to the current state of the economy and the losses at the World Trade Center. THe WTC area is or rather was a major hub in the finance industry, how does the 25k rule justify itself in times like these. It should be stopped.
I agree with Zarrar, when market opens, whenever, it won't be pretty and many more will be hurt financially as well. This is a moment of crisis, and we're all in a look out for solution. When Fed cuts rates, it's usually signals a light at the end of the tunnel. Rule was bad from the inseption, with current events overruling it may have a small positive impact. Better than nothing. My condolences and prayers to all, Bob
I woulnt say anything about the 25k rule if it wasnt for the the WTC incident. The WTC was more than 240 floors, each floor about the size of a city block, occupied by thousands of people in very strategic and key organizations capable of global implications. This is a loss. Over turning the 25k rule wont bring them back or change this reality, but how much more can you kill a dead dog, which is the case with our US economy. Even if the average investor/trader with less than 25k in their portfolio loses a point, they're still be beneficial to the overall economic scheme, they're creating movement even at a miniscule level. And tomorrow they'll come back and try again, and win, thus creating competition, volatility, volume and so on. My argument for this does not need to be repeated, many here have done an excellent job as to the un-necessity of the 25k rule. My point is that we need to stop this because it is simply meaningless in the economic climate following the WTC destruction. Can we understand what destruction means, it is permanenet, irreversible, and will take years at least to recover. I live in New York City, and it has changed dramatically for the worse since the slowing of the economy in the last one year. Now, it has literally changed for the worse as the financial distric, one that is/was the best in the world, now simply ceases to exist for the most part. Where is the reasoning and logic behind the 25 k rule.
By the way, the SEC also had an office in the WTC complex. The ramification of their loss is also obvious, meaning that whatever it was that went on there, wont go on there anymore, resulting in the reduction of a node of efficiency in an economic system.
Zarrar - i am sitting here in europe and watch the incredible horror that happened in your hometown and in washington. i wish i could do anything - but all i can do is to send my deepest sympathy to you and everybody in the united states. let's hope a way can be found to get over this dark period. i am disgusted of the violence in this world.
Of the 40-50 thousand people who worked in the WTC, the survivors aren't going to be employed tomorrow. Does this nation need unemployment? Of the survivors, many are going to be small-waged support staff, and not necessarily capable of living off their large reserves, and they will be looking for another office to work in, their opportunities have greatly been reduced. Will they resort to crime because they need to survive somehow? Its a possibility. But if they have 5-6 thousand saved up, they can trade small positions and maintain some livelihood because some of the best stock names are in their all time lows ranges. There is no telling what the effects of this devastation will be on such a close and interdependant economic ecosystem. The ripples could be felt far away from New York City as well no doubt. Where does the SECs 25k rule fit into the American culture? Are they trying to create an underclass for some profound reason unknown and uncomprehensible to the rest of us? Civilization is based on collective efforts, leaving out a group does not accelerate the process of civilization. From a theoretical standpoint, is it not better to have earners and spenders for a succesful economy? How does the 25k rule benefit anyone, even a market maker for example. The 25k rule must be stopped if this world is to continue flourishing.
You have a point Zarrar, but so far you mentioned no practical ways to go about it, just reasons. What do you have in mind? Bob