Re: The coming collapse of the US dollar

On Jun 21, 9:17 am, bowman <bow...@xxxxxxxxxxx> wrote:
Alohacyberian wrote:
Yeah, well the kind of behavior that lead to the Great Depression can't be
repeated because of the myriad of safeguards that have been put in place
since that time.

How many of those 'safeguards' were dismantled?


Not many really. There are two levels of these, the first are
"private" in the sense that the actual markets decide and
impliment them. These are many of the "circuit breakers"
that we often hear about. They are intended to prevent
market specific problems causing selloffs for some reason.
I'd guess that depending upon what time you would like
to make the comparison, we have more today that most
times in the market history.

The second is the SEC/government run ones. Some of the
most important of those are the prohibition on margin buying.
The crash of '29 was a big problem in part because so much
of the money was borrowed. The result was that not only
the investor was ruined, but potentially also his financier.
Today, the concerns about the SEC rules is that the
markets often create new products and ways of handling
investments that are typically "ahead" of the rules.
Junk bonds, computerized trading, derivatives, hedge funds,
etc. often introduce risks which the rules don't sense
or respond to. The SEC usually plays "catch up" with
these things, occassionally after a scare of some sort.
In this sense it isn't so much a case of "dismantling"
rules as it is not modernizing them.

.