Comments on: An End to Short-Termism: A Call to Arms http://www.directorship.com/overcoming-short-termism/ Boardroom Intelligence Tue, 07 Feb 2012 09:48:26 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Ed C http://www.directorship.com/overcoming-short-termism/comment-page-1/#comment-15725 Ed C Mon, 24 Jan 2011 09:37:22 +0000 http://www.directorship.com/?p=10821#comment-15725 I have waited to see what the SEC would do to reverse all the negative effects of short termism but they have really done NOTHING! In-fact, they are the goverment body responsible for the short termism. I have written several articles on this subject and agree with your report 100%. Things to think about... 1) it was the SEC that initiated the canges in the rules starting in 1998 to allow the very situation we have now ie: HFTs that do nothing for the market but provide "volume" without obligation to support market with reasonable bids. 2) co-located computers to in my opinion are nothing less than having the effect to "front run" the general market participant and should be illegal. 3) removal of the "uptick rule" in Augut 2007, which removed the last speed bump in allowing the computers to rapid fire sell orders at a stock or ETF with the sole purpose to involke "fear" into the market to start a selling stampede for no good reason other than they can 4) speaking of ETFs, again another short term vechicle allowed by the sec to promote short-termism So it is the SEC that is in-fact the body that is responsible for the very dangerous market structure that we now have and I further predict that this situation will crash the market again and wipe out our 401k and pensions and then what do we do as a nation with our large "baby boom" population retiring with no money? Unfunded, social security, unfunded pension plans liability and the wiping out of personal retirement accounts...what happens to our nation? Does anybody care?, certianly not the SEC who is charged with only 2 main mandates 1) maintain a strucurally sound market place and level playing field 2) enforcement of the rules and regs to assure the sound and structurally secure market place Without the SEC putting back most of the rules that served us well for 75 years, put in place by their predessors to prevent the very situation that had happened, I am certian we are doomed. I have waited to see what the SEC would do to reverse all the negative effects of short termism but they have really done NOTHING! In-fact, they are the goverment body responsible for the short termism. I have written several articles on this subject and agree with your report 100%.

Things to think about…
1) it was the SEC that initiated the canges in the rules starting in 1998 to allow the very situation we have now ie: HFTs that do nothing for the market but provide “volume” without obligation to support market with reasonable bids.

2) co-located computers to in my opinion are nothing less than having the effect to “front run” the general market participant and should be illegal.

3) removal of the “uptick rule” in Augut 2007, which removed the last speed bump in allowing the computers to rapid fire sell orders at a stock or ETF with the sole purpose to involke “fear” into the market to start a selling stampede for no good reason other than they can

4) speaking of ETFs, again another short term vechicle allowed by the sec to promote short-termism

So it is the SEC that is in-fact the body that is responsible for the very dangerous market structure that we now have and I further predict that this situation will crash the market again and wipe out our 401k and pensions and then what do we do as a nation with our large “baby boom” population retiring with no money?

Unfunded, social security, unfunded pension plans liability and the wiping out of personal retirement accounts…what happens to our nation?

Does anybody care?, certianly not the SEC who is charged with only 2 main mandates

1) maintain a strucurally sound market place and level playing field

2) enforcement of the rules and regs to assure the sound and structurally secure market place

Without the SEC putting back most of the rules that served us well for 75 years, put in place by their predessors to prevent the very situation that had happened, I am certian we are doomed.

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