(Ann is madly in love with JESUS, but unfortunately she's still a Roman Catholic)
Posted by Ann Barnhardt - October 22, AD 2012 4:45 PM MST
2. Here are two things that you all should do after the collapse and war that will correct a lot of the problems in the financial sector today and will lend instant stability and credibility to the system.
A.) No Branch Banking
Do you realize that branch banking used to be illegal? Interstate branch banking was only made legal in 1994. A great way to keep the banking sector under control is to prohibit branch banking. You will also need to make Bank Holding Companies illegal again, too, because BHC's are just a legal work-around to branch banking. If you allow inter-state banking (assuming there are still states) or even multi-branch banks within a state, you are going to get into the "too big to fail" dynamic all over again. The way to keep banks in check is to prohibit branching. Let each bank truly be a local member of its community and neighborhood.
B.) Set up new stock and commodity exchanges that are 100% open outcry execution. Pits. Screaming. Frantic arm-waving. Clerks. Runners. Old school. Orders may be routed to the exchange floor electronically, but they MUST be held in a deck and executed by human beings ONLY. This will put a completely organic buffer and control mechanism on the markets and will restore a considerable amount of integrity. Yes, pit traders can still be sleazoids BUT the safety and buffering afforded would far exceed the "sleazoid shrink".
Clerks and open-outcry brokers used to provide tremendous "security" to the markets, believe it or not. Many times in my 14 years in business I would have either a clerk or a pit broker call and double-check an order. We all make errors, and if I had, for example, put a spread order in "upside down", or if I had used the wrong months, someone would usually catch it. Also, using open-outcry largely eliminates the risk of a rogue trader entering massive orders that cannot be margined or funded. I had, on occasion, a desk manager call either me or the Risk Department of my clearing FCM to double-check that the account I had placed a very large order for was okay to put on a large position, and double-check the quantity. That's good business, and it is also the job of a good desk manager. With electronic execution, rogue traders and brokers can single-handedly cripple or destroy companies. Some psycho broker named Evan Brent Dooley ran up a $141 million loss trading wheat in the overnight electronic session on February 26, 2008. He managed to put on 15,000 contracts, which is 75 million bushels, in ONE EVENING. If any human beings besides Dooley had been involved in any way, that never would have happened. Oh, and the company Dooley worked for? MF Global.
3. One way to cross-confirm when exactly civilization began its final nosedive into hell is to look at PHOTOGRAPHIC PORTRAITURE. Do you realize that before 1968 people generally did not smile in photographs? This goes for portraits as well as casual snapshots. I have seen old family snapshot pictures dating back into the 1920s, and no one is ever smiling. The same goes for yearbook pictures and wedding portraits. People posed for photographs with dignity. The smiling thing only began in the late 1960s. We should go back to that. The next time you have your picture taken, go for the old school dignified pose. No "nicey-nice" toothy grin. Toothy smiles put the focal emphasis on the mouth, whereas a dignified pose puts the emphasis on the eyes, which truly are the window to the soul. Your mouth is the window to your digestive tract.
If you don't believe me, I offer you proof. I have no idea who the chap on the left is, but he looks a lot smarter and more capable than the jackass on the right, doesn't he?
(Said the chick with her big, toothy gob plastered on her redneck website.)