The President tonight called for new regulations to 'stop' reckless speculation in the stock market. What do you think , besides reinstating the uptick rule for short selling, they have in mind? Speculation in the markets have been around since trading began. But the insiders have just about killed the goose that laid the golden egg. The stock market have destroy people's retirement by the wiping out government and company pension plans and individuals IRAs and 401-K savings. Look for a movement to directly correlate stock prices to actual companies performance and removing the gambling from the markets. Too much damage have been done to the economy under the current no regulation of stock price manipulation which had no relation to earnings or reality. Government regulation is always the result of abuse. Change is blowing in the air. They will be making an effect to control the boom and bust of the stock market and its effect on the economy caused by speculation.
Greenspan tried doing that instead of letting normal economic cycles play out and look what happened. The more "they" interfere, the worse things get.
I agree, the stock market RULES! not sure how they would prevent "bad" speculation. I'm thinking more transparancy and token fines for market manipulation. hedge funds are going to have a lot more paperwork.