Hollywood movies often wrongly portray the US securities industry.
Recently I got this mail from a peron of some standing outside our industry which watched the movie “The Big Short” on Netflix. He was appalled and told me so as it stated its based on a “true story”.
Paul, have you watched The Big Short on Netflix .... Based on true story ... kind of appalling is it not.
Here is how I took time to reply to him and so felt like sharing it with you all as well:
Ah Hollywood, so much nonsense garbled in... I guess that is why it’s called entertainment and drama, far from educational. Pls. realize the US securities/stock market industry is more regulated than any other there, or anywhere! Were heavy fines and suspension are regularly issued along at times with jail sentences. Realize also, all US brokers must have a higher education, give FBI finger prints at the outset, show no criminal record and good credit rating-and can never before have declared personal bankruptcy and if so in the future are immediately terminated. They also must be bonded which then has serious consequences if the bond company is involved in consequences. The US SEC and State and other regulators there are very strict with super computers monitoring 24/7 all volume and trade patterns, something computers do incredibly well...and so it relatively easy nail culprits. All customer complaints must be answered in a timely and satisfactory way, by US SEC law. The US SEC is a very powerful regulatory agency with vast reach and strong mandates. Just very recently it demanded a very rich/powerful Russian to be extradited to the US, from Switzerland, for insider trading, which the Swiss then did.
On that movie, which I saw some time ago is full of nonsense & innuendo and most only portrays a negative light on this industry....in fact it makes a joke/butt of it. Like a High school rogue bully student would tear away at others only via jokes at their demur/expense. So many, including journalist, get away with slamming this industry as barely any schools teach even the core around this: i.e investing in general and financial assets investing specifically. Hence there is much misinformation around it, often unchallenged. I know I was proudly part of this industry for many years.
BTW, over the past 1 year, past 10 years -and past 100 years stocks in general have been by a good margin the best performing investment asset class of any investments, overall.. Feel free to share with some others if you feel like it, so not let them believe or talk some un-informed nonsense around this. Of course there are abuses and real criminals around as it has to do with real money, which is why its so tightly regulated there with teeth.Paul A. Renaud. www.thaistocks.com