Category Archives: Regulation

Can anyone explain our Politicians?

If you have ever been confused by how our illustrious leaders act, and the seemingly stupid decisions they occasionally make you might want to take a look at Daniel Ben-Ami’s excellent review of The Darwin Economy: Liberty, Competition and The Common Good by Robert H Frank. The Spiked Review of Books.

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Filed under Economics, Economy, How It Works, Recession, Recovery, Regulation

Economic Theory Run Amok

For economics buffs out there (is there really such a person?) and those of you who are really just trying to figure out why the world is so messed up, I have to recommend a paper by Dan Ciuriak and John Curtis called What if Everything We Know About Economic Policy is Wrong?

Ciuriak and Curtis take a look at the current global economic situation and examine how Economic Policy has failed. They contrast the promises of Trickle Down Theory with the actuality of recession, high unemployment and government debt.

Download the pdf here for free.

I recommend that you print off a copy and hand deliver it to your local member of parliament, congressman or other favourite member of the political beau monde.

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Filed under Economics, Economy, Employment, Finance, How It Works, Inflation, Regulation, Uncategorized

Changes to Flash Crash Rules

On Thursday Canada’s investment industry regulator, IIROC, proposed new safety measures intended to prevent future flash crashes like the one that happened on May 6.

Existing “circuit breakers” halt trading when the entire market rises or falls extremely quickly within a short period of time, but trading in individual stocks must be reviewed manually. This new proposal would allow trading to automatically be halted for a five minute period on any stock that appears to be subject to a “flash trading” scenario.

The plan is to prevent the extreme investor losses we saw in May, when some stocks lost up to 99% of their value in minutes.

IIROC has invited public comments on the proposal during the next 60 days. Read the press release here.

 

 

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Filed under Investing, Regulation, Securities & Exchange Commision, Stock Market