Another opinion

swarnasana · 1 Another opinion Sat Aug 13, 2011 5:48 am

swarnasana

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From "The Island" August 13

Brokers playing a dangerous game
August 12, 2011, 6:02 pm

Which bank gives loans again and again and again to people who didn’t pay up loans. Only brokers! They force sell shares and let the same people buy back shares on credit. All the time SEC became a monkey dancing to the tune of the brokers. This is why brokers should not be given credit. Don’t put the economy of the country in danger by giving in to the appeals of the brokers. Ask the brokers why they give credit to people who didn’t pay up. That is why we have a T+5 domino effect.

Brokers should not be given the rights to handle credit. These brokers are crafty as foxes. They will show a pretty picture to SEC and give out credit over credit over credit only thinking about their profits. Credit should be handled with utmost caution. We can see what credit has done to economies in other countries. Learn from them. Don’t let more debt get on top of debt. Let the market grow steady. Look what happened to the market in the last few days. Rumor went around about relaxing credit, market rose up. Look at the counters that went up. If this is how the greedy and foolish retailers gamble with the help of brokers, relaxing credit would play havoc and make complete chaos in the market.

CSE should lower the broker charges to 0.1% as in other stock markets. This will increase the liquidity and make the market healthy because shares don’t have to be pumped up to make a profit then.

Sanjiva Perera

nathanfornash · 2 Re: Another opinion Sat Aug 13, 2011 8:36 am

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swarnasana wrote:From "The Island" August 13

Brokers playing a dangerous game
August 12, 2011, 6:02 pm

Which bank gives loans again and again and again to people who didn’t pay up loans. Only brokers! They force sell shares and let the same people buy back shares on credit. All the time SEC became a monkey dancing to the tune of the brokers. This is why brokers should not be given credit. Don’t put the economy of the country in danger by giving in to the appeals of the brokers. Ask the brokers why they give credit to people who didn’t pay up. That is why we have a T+5 domino effect.

Brokers should not be given the rights to handle credit. These brokers are crafty as foxes. They will show a pretty picture to SEC and give out credit over credit over credit only thinking about their profits. Credit should be handled with utmost caution. We can see what credit has done to economies in other countries. Learn from them. Don’t let more debt get on top of debt. Let the market grow steady. Look what happened to the market in the last few days. Rumor went around about relaxing credit, market rose up. Look at the counters that went up. If this is how the greedy and foolish retailers gamble with the help of brokers, relaxing credit would play havoc and make complete chaos in the market.

CSE should lower the broker charges to 0.1% as in other stock markets. This will increase the liquidity and make the market healthy because shares don’t have to be pumped up to make a profit then.

Sanjiva Perera

While this author is giving the correct picture, as mentioned in another thread with that misleading asiantribune article, the popular decision will not always be the right decision. The broker lobby is extremely powerful and is hand in glove with the crooks running the SEC. While the decision they give may be "favourable to the retailer," given the ride that brokers take the retailers on, it is opening up a whole can of worms and a lot of trouble for the SL economy in future if broker credit is extended.

However, if brokers put in place the same systems to measure and monitor individual credit risk, then I am all in favour of the same. Unti then, don't get suckered in by brokers who are "crying on behalf of the retailer" when all they are really crying about is their bonus.

Kithsiri · 3 Re: Another opinion Sat Aug 13, 2011 9:11 am

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How about a fixed amount for each transaction made irrespective of the size of the deal?

Investor99 · 4 Re: Another opinion Sat Aug 13, 2011 9:22 am

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As I have mentioned in my earlier posts brokers are not banks they should not be allowed to provide unregulated credit. Investors in the intention of getting rich soon and the brokers looking for big bonuses are all one greedy bunch so they only think about their pockets and not about the country's long term economy.

The markets should grow on positive financial data and not on credit related purchasing by investors. I hope the SEC acts with caution to the broker’s request.

rijayasooriya · 5 Re: Another opinion Sat Aug 13, 2011 9:35 am

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swarnasana wrote:From "The Island" August 13

Brokers playing a dangerous game
August 12, 2011, 6:02 pm

Which bank gives loans again and again and again to people who didn’t pay up loans. Only brokers! They force sell shares and let the same people buy back shares on credit. All the time SEC became a monkey dancing to the tune of the brokers. This is why brokers should not be given credit. Don’t put the economy of the country in danger by giving in to the appeals of the brokers. Ask the brokers why they give credit to people who didn’t pay up. That is why we have a T+5 domino effect.
Sanjiva Perera

Who is this Sanjiva Perera ? Is he really stupid enough not to see why brokers do force selling...? It is because T+5 day rule.
Brokers do force selling on T+5 and then again give credit then again force sell on T+5 and this cycle MAY go on.
If there is no T+5 day rule investers can hold on.Investers should not be offered more credit if they are at the limit. SEC should have proper monitoring system.
This T+5 day rule actually give short term benefit for brokers.But as it negetively affect the overall market condition ultimately they will also suffer.

mark · 6 Re: Another opinion Sat Aug 13, 2011 3:37 pm

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now our market has become too much CREDIT SENSITIVE,mkt will go up if the announcement release,but we again going to credit market.....so problem will be still remains,so its vital to stipulate some systems to control over credit.