POOR RICHARDS REPORT<\/p>\n
Chapter 11
\nPay the Price Now!
\nWhen the markets start to crumble that is when one finds out who has done bad deeds. That is when people become hurt financially.
\nThe problem today, in 2014, is that we have been playing by new rules. Interest rates are low and we have been shut out of many other places, which leaves investments; Stocks and bonds.
\nSo the banks, wall street, and other financial organizations have new rules aided by the computers and programs that we can not afford. It is called \u201cWe win \u2013 you loose!\u201d
\nJanet Yellen, the current chair of the Federal Reserve is the only person who can change the game.
\nBy raising Margin rates, she cuts off the flow of excess dollars floating around the world for ill begotten means. Forcing banks to increase their reserves means that the most aggressive banks will have to call in some loans. The easiest calls are made on those who purchased stocks. They force sell orders, but those are the most liquid calls.
\nWhen margin rates are raised, one can keep their positions intact, and make same day substitutions at the old rate. If one sells and waits one day, then they have to pay the new rate.
\nNow if one gets a margin call (this means one has fallen below the limits and either has to substitute or add stock or cash) the golden rule in the street is that one should never meet a margin call with cash. The stock is telling you something \u2013 sell!
\nThe SEC can pick up the ball by Janet Yellen and do away with the decimal system for stocks and bonds. Fractions create a genuine spread between the bid and ask prices.
\nThis will cut off speculative trading at the knees. One can buy 10,000 shares of a 10 cent stock and sell it at 12 cents and make a bundle if one is lucky. By making a spread between the bid and ask the speculative trader has some positive news to support his position.
\nThe market maker is taking a risk as did the specialist on the floor of the stock exchanges by taking positions in a the security in order to maintain a fair and orderly market. The “spread” between the bid and ask prices is how he makes his money. Those monies also pay for his positions that he has overnight. He tries to provide support to the market place
\nThe decimal system has is for casino\u2019s and they operate with a 90% or more \u201ctake.\u201d There is no market maker or support.
\nThen Congress can pick up the ball and renew the Usury Law. Maximum interest rate is 8% for individuals. Debt instruments for corporations and municipalities and countries will depend upon their credit worthiness. The higher interest rate; the greater risk.
\nThen the Congress should have a moratorium on debt for two years. If one can pay down the principal during those two years, then the interest rate is zero(0%)! Is it not much better to receive your principal back then nothing at all? Collage loans would be a great example, and it would also help reduce the government debt.
\nThe banks and financial institutions will scream bloody murder, but they are the ones who got us into this mess.
\nThe small corporations of the world are the ones who raised our standards of living and in the US the Securities Exchange Commission (SEC) was created to protect the individual investor from over zealous bureaucrats.
\nThe major problem we all face today is how do we tame the computer?<\/p>\n","protected":false},"excerpt":{"rendered":"
POOR RICHARDS REPORT Chapter 11 Pay the Price Now! When the markets start to crumble that is when one finds out who has done bad deeds. That is when people become hurt financially. The problem today, in 2014, is that we have been playing by new rules. Interest rates are low and we have been […]<\/p>\n","protected":false},"author":83,"featured_media":746809,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[750],"tags":[],"class_list":["post-108836","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-richard-de-graff"],"_links":{"self":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/posts\/108836","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/users\/83"}],"replies":[{"embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/comments?post=108836"}],"version-history":[{"count":0,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/posts\/108836\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/media\/746809"}],"wp:attachment":[{"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/media?parent=108836"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/categories?post=108836"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.turkishnews.com\/en\/content\/wp-json\/wp\/v2\/tags?post=108836"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}