In defense of Peter L. Brandt, @peterlbrandt (from my tumblr post, Nov 10, 2011)

This is a frightening development. Your article about the situation should be read and taken seriously.

I’m about to write a rant IN YOUR FAVOR. Forgive me, these folks knocking you irritate me.

These are people who appear to be in a vindictive mood and don’t seem to understand what they are saying. They should run for office.

I take every loss, and I’m not bailed out. I make a gain, I take a bow. I’m on my own. I’m not too big to fail, and I’m too small to be saved, given the logic of these “well intentioned” statists.

The presumption of those who have written to you, in objection to your very legitimate concerns, is that speculation with leverage by the solo trader, by the small account, by non-money center banks should not have the integrity of their account equity protected. This reflects a tragic lack of understanding about the nature of these accounts. It also reflects a serious social animus that has infected the political process on BOTH sides of the fence.

They seem to be in a punitive mood, ready to lump in smaller independents who take their lumps or their victory laps, on their own dime and steam, with large enterprises that have had their losses assumed by the taxpayer.
Marc Faber talked about how the growth of government in our economy and society has resulted in a coinciding decline in personal accountability and responsibility.

They also seem to be in the mood to abrogate basic contract law, embedded within the common law of our society, which was developed centuries ago in a far more rougher age in England and the European continent.

What will then happen to stock accounts? What happens to investors who use these same markets to hedge? What happens to merchants who enjoy liquid markets with active price discovery mechanisms? What happens then to money markets (a/k/a “cash”) if all kinds of contracts are suddenly open to being “punished” by the powers that be, goaded into revenge mode by “nanny staters” who hate capitalism?

I’m still a newbie but even I know this will lead to more than the death of the futures markets. MUCH more.
This is the problem with people who want to manage the markets as if they’re better than the “invisible hand”. It makes me sad.

My parents left China, and communism and statism behind decades ago. In that world, some people claimed to know better than most, setting themselves above others, and hypocritically reserving the best for themselves and parceling out the rest, in effect. Many suffered at the hands of these self-appointed “saviors”.

Millions starved under Mao, were purged under Stalin and disappeared in the killing fields of Cambodia. So many lives have been ruined by those who share like minds with those who have knocked you for citing a serious danger to our economy. They’re fools. Plain and simple.

Good luck getting your “green friendly” goods at the market, kept cool by electricity powered by coal that power companies finance with futures, imported on ships and trains from other countries relying upon the leverage of letters of credit for transport, driving your hydrocarbon or hybrid fueled vehicle, manufactured with raw materials sourced by auto companies and manufacturers relying upon the futures markets where prices are created by such parties as “evil” liquidity providers, so that you can go home, made out of lumber, which trades as a future, and boot up a machine, manufactured by capitalists who found a way to cram a century of silicon expertise into a sliver of aluminum, alloys, plastic and silicon, so that you can attack an honest, humble, thoughtful, SELF-MADE individual who’s sounding the alarm about what’s going to happen to your smug, snarky, self-righteous lifestyle.

Peter, don’t stop, maybe they’ll learn. I know that I do each time you write and/or we correspond.

http://eddiemarkets.tumblr.com/post/12605313479/in-defense-of-peter-l-brandt-peterlbrandt

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