Stock Exchange Crash

[Sunspot144]

Do stock exchanges like ETrade ever crash? From issues like a lot of traffic / trades going on for the day.

[nickopedia]

E-Trade is a trading platform, or type of broker, not so much an exchange.

SIPC (The Securities Investor Protection Corp) is a government agency that regulates these types of entities. They are extremely strict, and their liquidity/capitalization requirements are such it's doubtful they would "crash" like what you saw during the financial crisis of 2007–2008. This is also due to the Dodd–Frank Wall Street Reform and Consumer Protection Act which put in additional safeguards to prevent that type of thing from happening again.

Of course you can't really predict where the market will be going. Some traders will make money when they are long, and others will take profits on shorts.

Remember this old saying: Bulls make money, Bears make money, and Pigs get slaughtered!

[phaz0rz]

If you mean website trouble like Coinbase likes to have during volatility... probably.

[Sunspot144]

Originally Posted by nickopedia

E-Trade is a trading platform, or type of broker, not so much an exchange.

SIPC (The Securities Investor Protection Corp) is a government agency that regulates these types of entities. They are extremely strict, and their liquidity/capitalization requirements are such it's doubtful they would "crash" like what you saw during the financial crisis of 2007–2008. This is also due to the Dodd–Frank Wall Street Reform and Consumer Protection Act which put in additional safeguards to prevent that type of thing from happening again.

Of course you can't really predict where the market will be going. Some traders will make money when they are long, and others will take profits on shorts.

Remember this old saying: Bulls make money, Bears make money, and Pigs get slaughtered!

By crash in 07-08 it was some sort of market manipulation?

Coinbase crashed recently, went offline temporarily right as the price plummeted. If ETrade can possibly go offline Coinbase can. There are ETrade status websites as some evidence it's possible. Coinbase should be refunding eveyone their transaction fees as they are providing a $hit platform that crashes at crucial moments...

[Sunspot144]

Originally Posted by phaz0rz

If you mean website trouble like Coinbase likes to have during volatility... probably.

Yea bro whatever happened people are gonna be selling earlier now HA. Coinbase was a pig and we got slaughtered!

[nickopedia]

I think when we talk about "Crash" it means either a site failure, or a market "meltdown" of sorts. They are two different things, but could be related as a result of a panic, or mass market selloff. Sort of akin like the run on banks (panics that occurred between 1929 & 1931).

If a site like ET or other large broker like Charles Schwab, etc gets overwhelmed during a market panic, it's very likely the market will enact a trading curb, sometimes referred to as a "circuit breaker". This is a financial regulatory instrument that is in place to prevent stock market crashes from occurring. For example, if the DJIA was to decline more than 10% within an hour, you can bet your rear end the SEC would order one!

These limits were put in place after Black Monday in 1987 in order to reduce market volatility and massive panic sell-offs. There have been additional safeguards put in force, not just for the NYSE/NASDAQ but the CME/COMEX, and other financial exchanges (not just equities, bonds, but commodities as well)

I'm sure sites like E-Trade have lots of safeguards in place and their own set of "circuit breakers" to avoid stuff from getting too hot. It's a tightly regulated industry, and lots of eyes are watching things.

[Sunspot144]

WAIT.

So did Coinbase do it's own circuit breaker?????

[Sunspot144]

It makes total sense because I said if the "crash" wasnt a coincidence it would prevent mass sell off and prices would maintain a higher bottom line!

[nickopedia]

Coinbase is a bunch of crap.

I'm ashamed to say that I recommended them back in the day to buy BTC. That turned out to be a mistake since they make the whole process of enrolling to damn difficult with their endless security checks, verifications, holds, and other games they play. I once had my limit slashed for no reason. The first support rep said it was a system error, another told me it was due to "some security hold" but couldn't explain further. I called yet again and got a different answer altogether.

One of my buddies once had a $400 payment held by them for two months and couldn't give an explanation why. He ended up having to dispute the transaction with his bank to get the money back. Coinbase support is run by a bunch of morons. They are even worse than PayPal IMHO.

[phaz0rz]

The more you use CB the more they like you. I've read it other places and noticed it myself. A couple weeks ago they bumped my instant debit card limit from $500 to $5000. Luckily I haven't had any trouble with them yet other than KYC being a PITA in the beginning.

No doubt they've been purposely causing "outages" for years now.

[agent006140]

I cant wait for another 1987 like stock market crash,where can we order one?
There is nothing wrong with our economy,but James Baker threatened the Japanese that he will let the US$ sink further vis-a-vis the Japenese yen.
The US 30 years treasury bond yield exceeded 10% and all the money managers saw it a as a gift of a lifetime,whether thru human or program trading,they sell stocks to buy bonds.
Do you ever watch the Wentworth commercial late at night-It is your money and you want it NOW !!!!

BTW,what do you guys think of this Saturday talk between Trump and Xi?
Xi promises to buy more US agricultural products,I assume it will be soy beans and pork.
Pork price could go thru the roof as Chinese pigs are being slaughtered due to swine flu epidemic.
And Trump relaxes restrictions on Huawei,and no tarriff for the 300 billions dollars imports.
It does not sound like a big win,unless there is more coming !

Wentworth aint stupid,when GE wants to dispose its insurance business,Wentworth bought but refused one product line-long term health care for those in nursing home.
Back then,actuarials did not expect us to live that long and medical care aint that expensive like these days with all the fancy machines and prescription drug.
Those who enroll early in the program paying $80-$400 a month are still alive and in nursing homes,compliment of GE ,one woman said she paid $34K in premium and now it has so far cost GE millions.
There are also some who have to drop out as they cant afford to keep up with the premium.

You hear hospitals and state computers being hacked and held for ransom,wonder how do these brokerage firms prevent being hacked?

I must have come across individuals selling fraction of their bitcoin,could be on Craigslist and some are willing to accept Paypal,but more ask for cash/check.
Come across some interesting information,a company called Gold Money in Canada,it trades as XAU on Toronto Exchange,you can move out of precious metal into most major currencies.
The actual gold is held in vaults managed by Brinks.

if XAU is listed on Toronto Exchange,it would be audited every year,there is another Canadian company which deals in silver,cant recall its name.
But the ETF called Gold or GLD has enough gold stashed away .
There is a company in Florida,what it does is that it has either an interest or a working relationship with goldmining company I forget what country in central or south America and will sell you the gold they mine,$25k is the minimum.
Dont remember how much is the discount,something like 35% but there is a lead time..
But how can one trust them?They advertise in WSJ

There is this guy who died year ago and left everything to his niece,they found over $1 million dollars worth of gold in his garage !
Gold has its allure,Kuwaiti during the Gulf War who went to other middle Eastern countries found out their credit cards are not accepted,but if they have gold,they get to eat and drink and sleep in a nice place.

What I dont understand is Madoff,
-These days most brokerage houses take out insurance with lloyd of London to cover the full amount of your account,but Madoff does not have such and he is a big man on campus,one of the founder of NASDAQ,and many trust him,they are happy with their 12-13% return.
His accountant is a solo operator from Long Island.
So many of his staff were involved,his sons,his traders,his IT workers,no one ever snitch??

APMEX is the largest precious metal dealer in the country,if you go to their site,you can store physical gold with them in different countries.
yes,Madoff has an account with Chase,a castle in France,a yacht somewhere on the Riviera?a condo in Manhattan,a house in Florida.
His wife used to spend over $500 to get her hair done,now she has to ask permission to spend over $50

Originally Posted by Ossa

But a good idea: to sell expensive stocks with a portfolio. Wait, though not the collapse of the entire exchange, but catch the collapse of some stock. It drops great, and sometimes it will be a good profit.

any earnings disappointment, or just mere future guidance can sink the stock fast,sometimes they dont recover much.
Look at Beyond meat,Uber,Tesla,Fed Express.
I dont care to buy the raw Beyond meat patty in supermarket and fix it myself,but I can try one in a restaurant which presents it nicely, the idea that they use imitation vegetable blood turns me off

Monsanto?
It has been bought by Bayer of Germany.

you want to sell,do you own the stocks?
Yo better turn them in.
Now there are lawsuits their Round Up caused cancer

[phaz0rz]

Originally Posted by agent006140

Do you ever watch the Wentworth commercial late at night-It is your money and you want it NOW !!!!

Those commercials make me sick. All they're doing is encouraging more people to start frivolous lawsuits so they can live off of JG Wentworth money rather than having to work.

I bet JG is making a killing though. A company called "peachtree" recently started airing ads for the same service, and it feels like they're also run by JG. If that's the case JG is launching new companies to corner off the lawsuit buy-out business.

Edit : Just confirmed my gut feeling is correct. JG Wentworth and Peachtree = JGWPT. J.G. Those guys have a monopoly right now on buying up lawsuits.

It's the insurance company's money and WE WANT IT NOW!

[phaz0rz]

Originally Posted by Arde

rumour is that it's crashing soon?

No that's empire market.

[justinloz]

Originally Posted by nickopedia

Coinbase is a bunch of crap.

I'm ashamed to say that I recommended them back in the day to buy BTC. That turned out to be a mistake since they make the whole process of enrolling to damn difficult with their endless security checks, verifications, holds, and other games they play. I once had my limit slashed for no reason. The first support rep said it was a system error, another told me it was due to "some security hold" but couldn't explain further. I called yet again and got a different answer altogether.

One of my buddies once had a $400 payment held by them for two months and couldn't give an explanation why. He ended up having to dispute the transaction with his bank to get the money back. Coinbase support is run by a bunch of morons. They are even worse than PayPal IMHO.

Any good alternative to coinbase?

[phaz0rz]

Originally Posted by justinloz

Any good alternative to coinbase?

Cash app is next best IMO if you have a card or bank account to buy with.

After that, LBC/paxful but buying from individuals on sites like those has become a huge hassle in recent years. Sellers there will want an ID selfie and background check a lot of the time.

[Sunspot144]

Damnit, I was just daydreaming the other day of a business with a big vault and gold stores that could be purchased and stored in the vault.. So much for that idea!!!

[phaz0rz]

Originally Posted by Sunspot144

Damnit, I was just daydreaming the other day of a business with a big vault and gold stores that could be purchased and stored in the vault.. So much for that idea!!!

I can't tell if you're being sarcastic but I would never trust it. It's too easy for whatever company you're dealing with to lie about their reserves. There was an episode of American Greed about a guy from my state who ran a huge precious metals scam after the 2008 financial crisis. He conned hundreds of older people into buying silver "safely stored in his secure facility." He didn't really have the metals. It turns out he was issuing certificates for silver that didn't exist.

And it was easy for him to do considering the tight security that's normal for precious metal storage facilities. He basically told investors it would compromise security if he let them see the silver they were investing in, but they should buy anyway because the silver price will go up for sure, lol.

EDIT: his name is Ronnie Gene Wilson, his company was "Atlantic Bullion & Coin, Inc", and it's episode 7-8 of AG.



EDIT 2 : It reminds me of the doubt people have always had about Tether (the crypto, USDT), their reserves, and their inability to audit themselves.

[Sunspot144]

Originally Posted by phaz0rz

I can't tell if you're being sarcastic but I would never trust it. It's too easy for whatever company you're dealing with to lie about their reserves. There was an episode of American Greed about a guy from my state who ran a huge precious metals scam after the 2008 financial crisis. He conned hundreds of older people into buying silver "safely stored in his secure facility." He didn't really have the metals. It turns out he was issuing certificates for silver that didn't exist.

And it was easy for him to do considering the tight security that's normal for precious metal storage facilities. He basically told investors it would compromise security if he let them see the silver they were investing in, but they should buy anyway because the silver price will go up for sure, lol.

EDIT: his name is Ronnie Gene Wilson, his company was "Atlantic Bullion & Coin, Inc", and it's episode 7-8 of AG.



EDIT 2 : It reminds me of the doubt people have always had about Tether (the crypto, USDT), their reserves, and their inability to audit themselves.

Can see how that would be unnerving if someone tried to get away with that con. It's basically a ponzi scheme of sorts isn't it? Invest in me... but if you need your money I can't give it back to you right away..

[Sunspot144]

Originally Posted by agent006140

if XAU is listed on Toronto Exchange,it would be audited every year,there is another Canadian company which deals in silver,cant recall its name.
But the ETF called Gold or GLD has enough gold stashed away .
There is a company in Florida,what it does is that it has either an interest or a working relationship with goldmining company I forget what country in central or south America and will sell you the gold they mine,$25k is the minimum.
Dont remember how much is the discount,something like 35% but there is a lead time..
But how can one trust them?They advertise in WSJ

Yea, it makes sense it would require wealthy connections to get any sort of foot in a gold store business. I wouldn't invest in some guy's 1 gold bar startup company even if he really did have it haha.

[Sunspot144]

[Sunspot144]

Could be they're comfortable in their position, had hopes of larger future returns or afraid of recourse Anybody's guess there..

[phaz0rz]

Originally Posted by agent006140

What I dont understand is Madoff,
-These days most brokerage houses take out insurance with lloyd of London to cover the full amount of your account,but Madoff does not have such and he is a big man on campus,one of the founder of NASDAQ,and many trust him,they are happy with their 12-13% return.
His accountant is a solo operator from Long Island.
So many of his staff were involved,his sons,his traders,his IT workers,no one ever snitch??

The movie makes it seem like only Madoff was the only one who really knew what was going on. And maybe one assistant that helped him fudge paperwork.

The fact his operation was an exclusive club with lots of "don't ask don't tell" going on probably made it that much easier.

What I found amazing about the whole thing was that he says he held the entire multi-billion $ (at times) fund in a single Chase Manhattan bank account.