Great Ponzi.com

2009-01-24

Market holiday (shutdown) coming


I'm sure we are going to get a market holiday.

The regulators around the world have already demonstrated that they are fully capable of doing wacky things to the exchanges. If heavy selling continues, I expect that eventually we will see a coordinated shut down of multiple international exchanges at once.

You can pick all the excellent stocks and good value you want, but I think the day is coming when EVERYTHING BECOMES ILLIQUID because they will lock you & me out of trading. In other words, whatever value you hold in securities will become unavailable to you for some period of time... and then of course you lose the ability to liquidate your assets, or sell out of assets which are declining. Since "selling" is the problem, just watch them outlaw selling.

You'll still have the assets, and eventually they will become liquid again. This is why you have to make sure that every security you buy has sound intrinsic value and long term prospects. Also, this is why I think short term speculative trading is a very bad idea, because eventually you will get trapped holding some fundamentally worthless thing (e.g. the JPM stock you want to buy for the bounce).

This idea has been suggested by government!

If you think I'm crazy, remember that this idea has been already floated.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aP5mpMUORBWM

Oct. 10 (Bloomberg) -- Italian Prime Minister Silvio Berlusconi said political leaders are discussing the idea of closing the world's financial markets while they ``rewrite the rules of international finance.''

``The idea of suspending the markets for the time it takes to rewrite the rules is being discussed,'' Berlusconi said today after a Cabinet meeting in Naples, Italy. A solution to the financial crisis ``can't just be for one country, or even just for Europe, but global.''

- Perpetual Bull