Tuesday, May 11, 2010

Casino Bets Lower Risk than Stocks!

The media announced that with computerized stock buying and selling programmes trading shares in nano-seconds, regulators are calling for limits to speed of trading shares.

They noted that even race cars have engine limits for safety reasons. Obviously they feel that the world's stock markets aren't safe places anymore for peoples' savings and investments.

Only 20 years ago, stock values had some relationship to the actual values of company assets and equity. Nowadays, interim stock values are pretty much based upon the future cash flows and earnings guestimated by company managers and speculators.

But, instant values of stocks are not even based upon guestimates, they are based upon mathematical models that use probability theories about how many people will invest how much each time a stock begins to go up or down. This makes the 32 to 1 odds on a roulette wheel number look very attractive indeed!

But this isn't really what this blog is all about. It is about our government limiting us to invest our retirement savings in stock market RRSP's. These are extremely risky investments nowadays and many retirement investors have had their savings almost wiped out.

The government is limiting us to invest in the electron manipulation game of stock markets instead of offering us solid investments with hard intrinsic value. Land, property, gold and other precious metals are hard intrinsic investments. Portable intrinsic value investments could be held on our behalf by government. Our property and land could be held by us.

Canadians should be writing to the Minister of Finance and all their parliamentarians to get the rules changed. We should be allowed to transfer RRSP investment funds, tax free, directly into our mortgage principle.

In this way Canadians will have some control over our retirement wealth risk. We won't be easily victimized by financial speculators, incompetent stockbrokers, investment bankers and bank lenders.

The financial community is greatly tarnished and no longer deserves our unswerving confidence. (Did you know that American Bank reporting rules were changed in 2006 and allowed them to legally over-state their net worth by more than 100%?)

Canadians need to be protected. We need to be immediately permitted to transfer our RRSP's to fully pay down our mortgages without penalties from the Banks or the government.

Consumer debt includes our mortgages. Canadians need to reduce our debts to be able to fund our way into the future. RRSP's fund nothing but speculation.

Get off your tails Canada! Make some noise.

Keep your tails in the water.

Bob the Beaver

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