Republicans Want You To Trust the Wolf.......

[The Whiskey Priest]

Last Wednesday, April 6, 2005, a sweeping change to rules stock trading was imposed by a 3 to 2 vote of the Securities and Exchange Commission. The two Democratic members joined with the Republican Chairman and approved regulations requiring brokers to accept the best quoted price for any transaction, no matter where it comes from. Before the rule change brokerages could by-pass the best offer and elect to fill the order with the fastest trade. It is estimated that investors will realize a savings of $312 million dollars. This savings were pooh-poohed by the Republican members of the Commission as simply a rounding error.

The change was met with opposition by major trading firms such as Fidelity Investments and Charles Schwab & Co, which were firmly against the rule. Such a change was viewed by opponents as being the government intruding into the free-market and a stifling of competition.

Meanwhile back within the beltway, the Republican Chairman of the House subcommittee on Capital Markets, Insurance, and Government-Sponsored Enterprises said that he would move to reverse the Commission’s actions.

The importance of this little piece of business is that Bush wants us to invest all of our retirement in this system. A system where we cannot even be assured we are getting the best price. What chance of making a good, rational investment does average person have, when they must spend their days trying to make a living for their families? It is like leaving the lamb's future predicated upon the good-will of the wolf.

Lamb Stew would be the results. Because that is what the wolf does.....