Australian (ASX) Stock Market Forum

Wall Street Has Failed - Obama

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Stormin_Norman said:
when someone short sells, they must buy. they make a profit selling high and buying low. when the market reaches a point, they decide that the price is 'fair' in their view and will buy out of their short sell.

banning short selling is effectively banning these purchases. it also disallows profit to be made in a falling market.

both these things only increase the bear market. not stop it.
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lol, it was tongue in cheek, I'm pretty sure MRC knows what short selling is and how it works:)
 
nomore4s said:
lol, it was tongue in cheek, I'm pretty sure MRC knows what short selling is and how it works:)
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i know. i was adding to his point.

re: the industrialists at the turn of the last century (Rob barons). it could be argued they made amaerica the great country it became, and has now fallen from.
 
Doris said:
Sounds like al anon! First you must admit there's a problem then you can try to deal with it.



Hear hear! This is Obama's pledge/goal for all aspects of government.

As Whitlam once said: It's time!
As Obama says: Now is the time! Yes we can!
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Oh Gawd,

If Obama is anything like Whitlam, we're ####ed.
 
wayneL said:
...and other horrors. :eek:
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Yes WayneL.

There is going to be a lot of negative or stagnant numbers for a long time.

I just hope that business activity is not smothered by the Obama administration but at the same time something very serious must be to done to flush out the pretenders who are damaging the confidence and the integrity of the system. Kenneth Lay was small fry compared to whats going on now from a confidence point of view.

More to the point the market have just gone along with the likes of Madoff and banks without the market correcting itself. Free-market capitalism is not meant to be governed by an oligarchy of a few players on Wall and Fleet St. It involves just as much the mum and pop businesses who employ people and go about their daily lives. If they make bad decisions they go out of business. As opposed to the current bailout system for the big boys. I know in many cases in Australia, where small business employ more people per dollar of turnover than the big players. These are the real people getting screwed to the wall at the moment! IMHO!

And continued monetary stimulus, nationalized failout schemes and excuse after excuse are just digging bigger holes for the world economy.

Like explod said on the Gold Thread earlier today, Obama will be blamed for the sins of his predecessors just like Jimmy Carter. I hope this guy gets a fair go and is not blamed 6 months down the track by the uninformed headline readers for the administrative ignorance of the Bush Administration over the last 8 years and circle-jerk that has become Wall St.

All is not well and yes things do need to change.
 
GumbyLearner said:
All is not well and yes things do need to change.
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Well said GumbyLearner.

I can't believe that the problems that we are having now due to lack of regulation, (not in Australia which is well regulated), that there are people who believe that it can be solved by even less regulation.

OK, let's have one man control the world's oil supplies (it did happen).
Let's have another corner the silver and gold market.
Let's have a monopoly in Telecommunications, let Telstra run free and we can all willingly pay whatever they want.
Let's have all Australia's banks merge as they desire and then pay them whatever they want.
Let's remove all protection from foreign dumping of goods,
let Woolworths/Coles control pricing on all the petrol stations.

To some people,the answer to everything is less regulations.

This shallow form of thinking leads to a statement like:
"I could get to work faster if I didn't have to stop at red lights."

I don't understand how some people think.
 
there's regulations, then there is government influence in the markets.

regulations are fine, government influence in the markets isnt.
 
Knobby22 said:
OK, let's have one man control the world's oil supplies (it did happen).
Let's have another corner the silver and gold market.
Let's have a monopoly in Telecommunications, let Telstra run free and we can all willingly pay whatever they want.
Let's have all Australia's banks merge as they desire and then pay them whatever they want.
Let's remove all protection from foreign dumping of goods,
let Woolworths/Coles control pricing on all the petrol stations.

To some people,the answer to everything is less regulations.
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Would you also complain if these monopolies were subject to a hostile takeover?
 
Naked shorts said:
Would you also complain if these monopolies were subject to a hostile takeover?
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Yes of course. The take over people would want to raise prices even higher for their customers so they could get their return.

Let's privatise water and sell it to the Packer family. Let's say to them there are no regulations and you can charge what the market can bare.

The result - a lot of smelly Australians!!
 
Stormin_Norman said:
.

abandon patents too?
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Yes, why not?

Drug companies could then stop wasting their time finding new cures for disease and cancer.

We could also copy any movie till the movie companies no longer bother to produce anything new.

Sounds utopian.
 
Knobby22 said:
Yes of course. The take over people would want to raise prices even higher for their customers so they could get their return.

Let's privatise water and sell it to the Packer family. Let's say to them there are no regulations and you can charge what the market can bare.

The result - a lot of smelly Australians!!
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or...

A lot of smelly Australians exclaiming "bugger this for a lark!", packing their bags and heading orf to Kiwiland! :)
 
Knobby22 said:
Yes, why not?

Drug companies could then stop wasting their time finding new cures for disease and cancer.

We could also copy any movie till the movie companies no longer bother to produce anything new.

Sounds utopian.
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:) exactly. perfect competition creates monopolies, and monopolies create perfect competition.

the desire to make a new means of production which is more efficient then the old means creates the monopoly. as they product is cheaper for the consumer and more profitable for the monopolist.

then the monopoly creates competition because the idea is widely adopted and competition efficiency reduces margins, as smaller competitors enter and undercut the monopoly.

then it happens all over again. stopping monopolies stops the incentive to create a new means of production which is more efficient.

stopping competition stops the new means of productions' lower real costs being widely adopted across the economy.
 
Stormin_Norman said:
:) exactly. perfect competition creates monopolies, and monopolies create perfect competition.

the desire to make a new means of production which is more efficient then the old means creates the monopoly. as they product is cheaper for the consumer and more profitable for the monopolist.

then the monopoly creates competition because the idea is widely adopted and competition efficiency reduces margins, as smaller competitors enter and undercut the monopoly.

then it happens all over again. stopping monopolies stops the incentive to create a new means of production which is more efficient.

stopping competition stops the new means of productions' lower real costs being widely adopted across the economy.
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There is some truth in what you are saying however it depends on what is being monopolised. There has to be a way of competing effectively with the monopoly. A Telstra monopoly would eventually lead to a wireless solution to compete. An oil monopoly may lead to alternate power sources but the road would be difficult and painful for the world. A water monopoly would be very hard to live with.

(We are getting rather deep here.)
 
Knobby22 said:
Yes of course. The take over people would want to raise prices even higher for their customers so they could get their return.
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What are you on about?

Hostile take overs Nob, normally split the company up and sell off the pieces.

You say you dont like big bad monopoly companies, but you also say you dont like such companies to be taken down?
 
Naked shorts said:
What are you on about?

Hostile take overs Nob, normally split the company up and sell off the pieces.

You say you dont like big bad monopoly companies, but you also say you dont like such companies to be taken down?
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Why would you split a monopoly and ruin your profits? That's just dumb.

Give me an example where that has occurred?
 
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