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- The Basel II Solution to Sub-Prime and Related Financial Planning (Part 2) - Editor, 1 February 2008 - No Comments yet
- Why the Stock Market in India should hang on to Syngenta - Editor, 9 July 2007 - No Comments yet
- Stock Market Secrets for Informed Trading in Futures - Editor, 15 June 2007 - No Comments yet
- Safe Stock Market Decisions on Margins - Editor, 13 June 2007 - No Comments yet
- Stock Market Lessons from SABMiller - Editor, 8 June 2007 - No Comments yet
- My Stock Market Valuation Methods - Editor, 6 June 2007 - No Comments yet
- 3 Top Ways to Choose an Investment Service - Editor, 25 may 2007 - No Comments yet
The Basel II Solution to Sub-Prime and Related Financial Planning (Part 1)
It does not end there. Banks have sold sub-prime debts to each other. Each of these transactions gave a second set of professional banker personnel, new opportunities to apply Basel norms to what their peers had done. Gross violations of risk management guidelines were overlooked every time bankers traded sub-prime loans. The losers of this round were investors with stocks in the financial sector. There is a strong moral case for investors whose funds have been used to discount sub-prime loans, to be compensated for negligence in observing Basel norms. The US Federal Reserve is party to this mess because it waited all the way until November 2007 before even getting banks to agree to adhere to the Basel II norms.
You cannot beat an Indian stock market for sheer gullibility. A company which owes its very founding to an investor community leverages the profits it has milked to de-list, and all the stock market police can think of saying is “fine!”
The stock market is green with envy at every story of success with futures. Who would not like to live the life of a rogue trader who bucks trends, deals with incredible margins, and makes lifetimes of wealth in hours! Amateurs and novices may look on in wonder as dream deals are made, with enormous profits realized with just marginal investments, but modern and skilled professionals are increasingly savvy about the systems and procedures which should support all dealings in futures. It would be naïve to sing the praises of futures with no word about the nightmarish turns they can take, but again systematic dealing can mitigate most of these potential hardships.
Stock market operations on margin money are no different from any other loans. It is common to give margin buying a bad name, but one should not blame a legitimate trading option for careless, poorly informed, and avaricious decisions which individuals may take. Margin buying has helped a number of veterans make their marks on trading floors. It remains a valid resource for skilled investors.
What can beat a long glass of cold beer after an exhilarating day on the stock market?
Administrator's comment: This following article was written in response to a previous blog on this site. Please feel free to give us you comments and opinions as well, or discuss it online with other Stock Market enthusiasts on our Forums.
Some of us are fortunate to work on stock market matters full-time. This makes it possible to study securities in great detail, to exchange notes with peers and associates, and do plenty of math! However, a large portion of the investing public can spend less than even an hour during a typical working day on stock market matters. How can such people manage their portfolios with adequate care?
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