SEC Looks Into Effect Of ETFs On Market Volatility

This, like other government inquisitions inquires has the potential to create more regulations. This inquiry can be picked up by nosy politicians and result in more regulations, which have a funny way of turning into a cartel for those with political connections — pull. Prices go up, quality goes down. Think the big lawsuit against tobacco companies, airlines before deregulation in the late 1970’s, and more recently, Mattel toy company’s deal.

Thanks to lack of regulation, innovation and financial engineering, ETFs have democratized trading of exotic instruments such as currencies and commodities such as gold that were previously out of reach of retail investors.

Here.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s