I don't want to be parented by a government agency that wants to take away investor's rights and destroy a free market system wherein investor's determine their own suitability and investment goals. The proposed changes are an invasion into investor's private affairs. I very well can read a prospectus and decide for myself without any further governmental intervention. In fact taking away the rights of investors to invest in leveraged/inverse funds will destroy liquidity, and will have unintended detrimental consequences for the various markets that these funds are offered in (all markets) i.e. there will not be enough short covering to rally back the market that many times serves as a pressure valve to stabilize markets, markets would've never attained such lofty levels to begin with, they could go into free fall when investor sentiment turns negative, tampering with the fear/greed cycle will throw a monkey wrench into the machine works, and there will be too few sellers covering their short positions. Does FINRA also intend to regulate stock shorting and put buying too? Does FINRA only have it's mind set on one particular class of investment? Government regulatory agencies such as FINRA will or will not realize the repercussions of their own actions, but the consequences will be very real even perhaps causing a Great Depression. History of government regulation of free markets rarely if ever, has caused price stability or protected investors. What's next, you can't buy a home in today's market because housing prices have doubled, tripled, and quadrupled (of course they will eventually fall very hard), or in any market that has wild swings such as stocks/indices, commodities, bonds, currencies & crypto markets? There's an inherent risk throughout the entire economy, who will catch the fall of these markets or any that has experienced high inflation? Why fix something that quite frankly isn't broken? All markets are highly leveraged whether they are called such or not, whether government/politicians understand that or not. Maybe as a government they can stop printing so many dollars flooding the economy, stop raising the national debt, and spend within our means before you set out on an endeavor to manage your citizen's private affairs. We live in a capitalistic society since our inception, capitalists use capital as they see fit, there are winners and losers, such is the story of capitalism. In many cases the pervasive risk in our economy doesn't come with fair warning, however the risk here is widely disclosed in prospectus, and brokerage firms already have forms that investors must fill out to invest in inverse/leveraged instruments. Furthermore, I can not support any party that under the guise of protecting investors against themselves, wants to further undemocratic policies wherein only the super rich can invest where ever they want, again cause greater wealth disparity and further eroding the American Dream.
Adam Smith:
"It is the highest impertinence and presumption in kings and ministers, to pretend to watch over the economy of private people, and to restrain their expense... They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their own expense, and they may safely trust private people with theirs. If their own extravagance does not ruin the state, that of their subjects never will."
Fred Schultz Comment On Regulatory Notice 22-08
I don't want to be parented by a government agency that wants to take away investor's rights and destroy a free market system wherein investor's determine their own suitability and investment goals. The proposed changes are an invasion into investor's private affairs. I very well can read a prospectus and decide for myself without any further governmental intervention. In fact taking away the rights of investors to invest in leveraged/inverse funds will destroy liquidity, and will have unintended detrimental consequences for the various markets that these funds are offered in (all markets) i.e. there will not be enough short covering to rally back the market that many times serves as a pressure valve to stabilize markets, markets would've never attained such lofty levels to begin with, they could go into free fall when investor sentiment turns negative, tampering with the fear/greed cycle will throw a monkey wrench into the machine works, and there will be too few sellers covering their short positions. Does FINRA also intend to regulate stock shorting and put buying too? Does FINRA only have it's mind set on one particular class of investment? Government regulatory agencies such as FINRA will or will not realize the repercussions of their own actions, but the consequences will be very real even perhaps causing a Great Depression. History of government regulation of free markets rarely if ever, has caused price stability or protected investors. What's next, you can't buy a home in today's market because housing prices have doubled, tripled, and quadrupled (of course they will eventually fall very hard), or in any market that has wild swings such as stocks/indices, commodities, bonds, currencies & crypto markets? There's an inherent risk throughout the entire economy, who will catch the fall of these markets or any that has experienced high inflation? Why fix something that quite frankly isn't broken? All markets are highly leveraged whether they are called such or not, whether government/politicians understand that or not. Maybe as a government they can stop printing so many dollars flooding the economy, stop raising the national debt, and spend within our means before you set out on an endeavor to manage your citizen's private affairs. We live in a capitalistic society since our inception, capitalists use capital as they see fit, there are winners and losers, such is the story of capitalism. In many cases the pervasive risk in our economy doesn't come with fair warning, however the risk here is widely disclosed in prospectus, and brokerage firms already have forms that investors must fill out to invest in inverse/leveraged instruments. Furthermore, I can not support any party that under the guise of protecting investors against themselves, wants to further undemocratic policies wherein only the super rich can invest where ever they want, again cause greater wealth disparity and further eroding the American Dream.
Adam Smith:
"It is the highest impertinence and presumption in kings and ministers, to pretend to watch over the economy of private people, and to restrain their expense... They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their own expense, and they may safely trust private people with theirs. If their own extravagance does not ruin the state, that of their subjects never will."