[thelastbear]

I understand this may touch some sensitive nerves of the majority, which I could not care less about. As a trader you want to be in the minority and given the failure rate of around 98% it is obvious why you want to be in the minority.

I also understand that the majority believes the U.S. sets the golden standard for regulation and that trading within the U.S. regulatory environment is the holy grail of security. Let’s start with the security part of it; MF Global and PFG Best are just two more recent examples of how U.S. regulated brokers bend their clients over and gave it to them good. My point is that those brokers who want to scam you do not care about the law and will do so in a regulated environment just as they would do in an unregulated environment. They are called criminals for a reason.

Now, let’s get back to my original question. It appears that U.S. regulators make an effort to recruit the sticky little crap at the bottom of the talent pool which will deliver consistent under-performance and wrong decisions. Let’s look at an example or two. During the financial crisis U.S. regulators imposed a ban on short-selling and were dumb enough to think it will stop the sell-off. Dumb money agreed, smart money advised against that move and regulators listened to dumb money. Markets collapsed further as a direct result of the ban.

After that they continued their push for more regulation, especially in the hedge fund industry. They failed to comprehend that the financial crisis started in the mortgage market which happens to represents the most regulated part with the highest government interference in the U.S. financial system while hedge funds were the only ones not begging for bailouts.

Additionally they thought leverage was the problem so they opted to limit leverage and even ban hedging positions. Leverage was never to blame, the lack of risk management was.

Go ahead and share your opinions, but I ask those who want to simply state that they think my point of view is the opposite of intelligent to at least offer more to the conversation than that.

[Rambo35]

This is a great post. I think that regulators do not understand financial markets and therefore try to make changes in sectors which had nothing to do with the problems.

[EU_TRADER]

Most US Government employees are dumb. Look at this NSA scandal, pure dumb****s