ROLEX18K

Marc Faber on the Economy, Gold, WWIII

The only problem in the current stock market crash and a collapse of global economy - is the lack of oversight.
OTC ( over the counter ) trading must be closed alltogether or regulated in the same way as excanges are, on the exchane like NYSE,NYMEX,ICE,CBOT,EU... or just any you can think of there is margin requirements, clearing, oversight by SEC, CFTC, NFA and then brokers look at their customer account to comply with all that.
OTC platforms are founded by biggest investmant banks that in the first place lend money to investors and then require the same investors to trade on their trading platforms.
It is not regulated, it is the biggest roulette table ever founded with huge risk as there is actually no margin requirements, only volume of few hundred trillion $$$.
Now think if any fund with 1 mln $ would be allowed to trade 200-500 mln $ of Crude Oil, Gold, Coffee, IBM, Wheat, GE, Sugar on one of the following above shown exchanges - of course not.
On OTC it is all welcome, as the contracts traded are not cleared or priced in real time like on the regulated exchange, those trades are reflection of a mix of assets like price of houses, price of Crude Oil, Treasury Bonds even the value of insurance to insure a 100 mln $ yacht against sinking or some person getting cancer at the age of 40.
I am not kidding here, this is the fact that, as Mr.Buffett called OTC markets a WMD weapon of mass destruction, how come a hedge fund with 1-2 mln $ of assets to insure UBS Bank or GM debt in size of 500 mln $ against default in 10 years time.Any investor or hedge fund could do it on OTC, just pay a commission to a bank that will sell you insurance on any debt and you are welcome.
CLOSE ALL OTC TRADING PLATFORMS NOW!!!