Thursday, January 15, 2009

Front running customer order - Another fin malpractice learned

This is an illegal practice by stock brokers that I learned about today. This is robbery and there are so many cheating options available with complex financial instruments available.
I think financial markets should be shutdown except for Commodities market and probably commodities futures with tight restriction to allow only hedgers. Speculators should be banned.
Credit derivatives should definitely get banned. I don't think rating agencies can do a good job other than to create employment for themselves. Again I am not an expert, but I would like to know opinions from experienced economic expert as to why they think credit derivatives (or most derivatives) are useful for general economy.
Let these people learn to make money honestly.

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