These are news from mainland China. One of the hottest equity market under the sun. The recent breaking down of Shanghai stock index, below 4000 level gives china traders/investors/punters whatever you wanna call a wake up call. Here is the result when you are trading a big R that beyond your capability.
A 70-year-old man collapsed and passed away in stocks exchange, and a university lecturer committed suicide after serious trading loses. What’s next?
I might be a little bit too slow on this, I just received an email from MF Global talking about the loss caused by one of their trader in U.S. Here is the news from my ‘googling’.
MF Global Hires Risk Consultant after Rogue Trader Loses $145.5 million
Brokerage MF Global has hired external risk consultants to review its order entry systems, after a rogue trader lost $141.5 million when he was able to exceed his limit order and place unauthorized trades.
The incident comes just weeks after Soc Gen revealed that a rogue trader lost more than $7 billion by placing unauthorized bets on European stock indexes.
Both these incidents have raised new questions about risk controls at financial institutions.
MF Global said its rogue employee, Memphis-based Evan Dooley, was trading in wheat futures in his personal account. He “substantially exceeded his authorized trading limit,” the brokerage said.
OK, here is the poll/bet. How many more busted rogue trader do you think we will see in 2008? 😀
Man, I just realize that it is Friday today! I was extremely busy with my work this week (and, ok, I am following Australian Open as well 🙂 ). All I have is just a couple of hours after London session open. So, no trade at all. I hope to get back to swing next week.
Here we go, another rogue trader who’ve thrown Société Générale into 4.9bn crisis.
SocGen said the exceptional fraud resulted from the purchase of huge long positions in plain vanilla futures hedging on European equity market indices that were beyond his limited authority.
The trader likely to trigger comparisons with the UKs Nick Leeson, who caused the collapse of Barings Bank in 1995 had deep knowledge of risk-control procedures from his time at the banks middle-office activities, which SocGen said had allowed him to conceal his positions.
Does it really help to have ‘deep knowledge’ of risk-control procedures ? uhm…
Nobody loves to pay tax. But, we all understand that it is our duty for the sake of society and country development and welfare. I am paying, to my own opinion, a ridiculous amount of tax every month (man, I am really pissed when looking at the tax deducted from my pay check every month! 🙁 ). But well, this is the ‘duty’.
HOWEVER, when you realize that tax payers’ hard earned money are used by a bunch of lazy bum, maybe it is time to question the welfare system of this country. No, I am not referring to pensioner. I am talking about these group of young, healthy, and even strong people, who just ‘DON’T WANT TO WORK’. I don’t care if they wanna work or not, but, if tax payers’ money are used to feed these bunch of ‘social elite’, uhm…what do you think? It sucks.
This report is kinda disturbing.
Who needs work?
My Rudd is going to stay hands off on interest rates to promote competition in the market. He is making a wise and intelligent move. Well, I am not saying the decision is right or wrong, but it shows his understanding of market. Period. Now, I am very interested in his promise on resolving housing afford ability issues.
New Prime Minister Kevin Rudd said Australia was a market economy and it was not the place of government to set prices.
“Maximising competition policy pressure is the right way to go – determining prices at a particular level is not something that any government of this country can do in a market economy,” Mr Rudd said today.
He said he would be concerned if banks lifted their interest rates further than the adjustment made by the Reserve Bank last month with a hint that squeezing families would be counter-productive.
“Can government of itself mandate what individual commercial banks do by way of their interest rates? No,” Mr Rudd told ABC radio today. “In a market economy banks will make their own determinations on that.”
My day job is keeping me busy this week. I reached home after 8pm Melbourne Australia time. That’s around 2 hour after European market open. I don’t rush to trade in this kinda condition. I will continue studying the market during my free time, however, I don’t think I have a chance to day trade just yet.
I am always interested in following the property market development here, Australia. One of the latest decorations along the streets of Melbourne suburbs are the House Auction sign boards. Yes, ridiculous. Basically, you can see auctions held every weekend. People are purchasing property desperately. For investment, for speculation, and for the real need.
Here is the news I found this morning.
ADVERTISED prices for houses at auction continue to be an extremely poor guide to what buyers actually end up paying, amid claims that consumers are being duped by real estate agents.
A survey of 378 auction results by The Age found that over the past two weekends, the difference between the advertised and final sale price was, on average, 20.7%, despite laws protecting consumers from underquoting and misleading conduct. The latest survey follows six weeks of surveys by The Age in April and May, which found similar results. Then, the average difference was 21.2%.
Agents can be prosecuted for underquoting through the Fair Trading Act, which prohibits misleading and deceptive conduct. There are also specific three-year-old underquoting laws that require price estimates to be based on what “a willing but not anxious buyer” would pay. The laws forbid agents from advertising properties for less than their own estimates.
Consumer Affairs Victoria last week released new guidelines designed to spell out what agents can or cannot do. Executive director David Cousins said agents had been put “on notice” on how the regulator would enforce the law. But that initiative has been muddied by the REIV, which released its own guidelines six months ago and took the extraordinary step of telling agents to follow their own guidelines rather than those of the regulators.
Uhm..What can be done by the new government, Mr. Rudd? Let’s see. I guess, it is the strong market demand, the desperate home buyers (and dumb investors) creates the naughty animals, real estate agents.
