The shorts are coming, the shorts are coming, or at least information aboutshort positions is coming. France, best known for its capitalist tendencies and wine, has put in place a new regulation that requires investment managers – i.e., hedge fundmanagers– to report their short positions. The idea is to help put off a crisis of confidence in the markets. Read the story here.
Here’s what the new rule will do: Nothing.
Well, OK, maybe it will add some jobs to the public and private sectors for people who create and process the data transmissions. Besides that, however, this new rule will not make markets more stable, put off a market crash or do anything else, for that matter.
Well, it will add to a little something I call information overload.
There’s just too much information good, bad and indifferent data flying around these days. Too much information to digest, act upon or even analyze. It’s what technology has done for us. I don’t disagree with those who say that hedge funds need more regulation. It’s a known secret where I come out on this issue. Hedge funds should be treated likemutual funds and governed by a new and improved, updatedSecurities Act of 1940. That makes investing in hedge funds, mutual funds and other funds open to everyone. Give the people what they want, products that can make money in good times and bad.
Right now all the people have is products that can only make money in good times. Let’s give everyone access to everything and let the people make a decision about how their money is being invested and managed. This is not what the powers-that-be want. Rather, these folks want to continue to maintain the status quo that splits investors into haves and have-nots. It’s time for a change. I think I heard that somewhere recently. Unfortunately, the change that is going to come is not one that I think will work.
THINGS THAT DRIVE ME CRAZY:
Taxicab television screens are perhaps the most annoying invention in the last five years. These little squares are annoying, obnoxious and almost as rude a cab driver who is jib-jabbering away on his hands-free cell phone. I mean, come on, if I wanted to watch news tidbits or learn about aJeopardy category, I would have stayed home and watched television in my pajamas