What do investors desire, and what can they realistically expect?

sgt_markets_observations_tony_180623

It is not an unreasonable aspiration to wish for the freedom to engage in speculation within a fair and unrestricted market. We seek the opportunity to trade financial instruments based on the principles of supply and demand or established economic patterns.

Furthermore, it is not an excessive request to demand consistency in government regulations. This consistency would instill confidence that the assets we speculate on today will not undergo sudden transformations tomorrow.

As speculators and investors, we yearn for reliable, up-to-date information that stands the test of time, preserving its accuracy beyond a few weeks. We also desire the autonomy to assume the level of risk we deem appropriate, without subjecting ourselves to rules designed to protect individuals who should never have ventured into our field in the first place.

 

Our industry operates within the framework of capitalism, an arena in which politicians should refrain from incessant interference. More critically, it is our industry that significantly contributes to the funds that sustain misguided economic policies. Consequently, if it were to be stifled, where would these policymakers find the revenue we generate? Furthermore, how would pension funds grow without investments in financial products and other speculative markets?

 

While some may attempt to provide answers to these questions, it remains doubtful whether these solutions would be practical or capable of delivering the growth potential we have historically experienced.

 

I can empathize with the small trader wielding a mere $10 worth of XRP and enough funds to engage in a single mini S&P contract. However, if these individuals find themselves dissatisfied when circumstances do not align with their expectations, or they feel shortchanged by their budget brokers in comparison to institutions like Black Rock or Vanguard, perhaps they should reconsider their involvement. Engaging in financial markets is a realm for adults, some of whom rely on these markets as a necessity, often dealing with substantial sums of capital.

 

For those who do not grasp this concept, it might be advisable to observe from the sidelines, a course of action commonly adopted by most "influencers."

 

I do not intend to be impolite, but I have grown weary of individuals who incessantly lament their losses in speculative markets, particularly when it is exacerbated by politicians who possess minimal comprehension of our industry but wield their authority to incessantly modify its functioning.

 

On the opposite end of the spectrum, it is high time politicians ceased crafting rules that primarily favor large institutions such as Black Rock, Vanguard, and their counterparts. Instead, they should focus on supporting smaller funds and companies striving to deliver a reputable and professional service. Allowing these colossal entities to dominate everyone's financial landscape is detrimental to our society's well-being. Furthermore, as these entities expand, their practices tend to veer towards corruption. I do not intend to point fingers, but history has demonstrated that power tends to corrupt.

 

I am not advocating for the introduction of additional laws, rules, or regulations, as I struggle to identify any legislation that has truly improved our industry.

However, if there is one rule I would advocate for, it would be to prohibit politicians and their families from investing in our markets. These individuals often trade based on insider information, a criminal offense unless one happens to be a politician or related to someone like Nancy Pelosi's husband.

 

None of us wish to witness anyone falling victim to fraudulent schemes, and we certainly do not endorse encouraging elderly individuals to invest their pension funds in highly speculative environments. Nevertheless, a significant portion of pension funds is already allocated to such ventures, whether individuals are informed of it or not. In my opinion, we should permit the industry to self-regulate. I am not implying that it takes a rogue to catch a rogue, but the industry should ideally be responsible for policing itself. If we are going to defund any institutions, let it commence with entities like the SEC and other industry regulators who appear committed to stifling the golden goose or at least every golden goose that finances regulators' vacations!

 

Let me be clear; I empathize with those who have been wronged or misled by promises of easy wealth. However, this does not necessitate the constant implementation of regulations that hinder industry growth. The world, after all, is not inherently fair. More importantly, each individual bears the responsibility of conducting their own due diligence and deciding whether to expose their funds to an industry rife with potential pitfalls.

 

I do not intend to disparage our industry, as I genuinely appreciate the intricacies of speculation and the calculated risks involved in generating income without physical toil. Nevertheless, just as I do not seek financial advice from my mother, I see no reason to heed the counsel of a government office worker. It's my money, my risk, and I would appreciate it if external influences refrained from intervening with their regulations.

 

I have lived through an era in which we've inundated ourselves with countless laws, to the extent that a substantial portion of the Amazon rainforest had to be sacrificed to generate the volumes of documentation required. Despite this legal deluge, boom-and-bust cycles persist, and instances of financial misconduct, such as FTX's misappropriation of funds, endure. It raises the question of what these laws have truly prevented. In reality, the primary consequence of these regulations has been the creation of a handful of behemoth corporations that now wield more influence than entire nations.

 

What is happening in the crypto industry is shocking, if not ridiculous.

How can a business whose whole reason for being be based on freedom from governments and central banks, now morph into an industry which does the bidding of governments and central banks?

 

I am completely shocked at how the idiots in Silicon valley are bending over backwards to help the US Government control what happens in this sector. Moreover I find it ridiculous that anyone interested in crypto currencies and the financial freedom they offered, would help governments create CBDC, or work tirelessly to bring about digital ID’s.

 

The whole attraction of this business was that it operated outside of the governments grip and influence, now we are placing it in the hands of politicians, without questioning what the politicians intend to do with it….yet we all know that whatever is done, the speculators and investors will be worse off!

 

Perhaps I am getting old, but I can’t help wondering what the cheering monkeys think they are doing when they help give governments control over the capital they and we, have worked so hard to amass!

 

 

 

 

 

 

As I watch what is going on, I fear for the future of speculative activity, because few are thinking about what will happen when we use CBDC and our governments decide no more speculating, or no more short selling, or no more paying of margin calls.

And if the speculators are frightened away, who is going to take the other side of the hedge trades that professional people need to do to insure their factories and other businesses against market fluctuations.

 

As I said, we are making so many laws now that it is quite possible we will kill the speculation industry. And if that happens, what happens to everyone’s pension, and what happens to industries that need to hedge future needs?

 

No one thinks about this, certainly not the politicians, and for that matter, the kids who treat the business like a “game with prizes” and then complain bitterly when they realise the coconut is glued to the shy!

 

These markets have worked for hundreds of years…do we really need to keep changing the rules?

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