Tuesday, August 28, 2012
Safety protections for workers but no secure trading environment for your money in shares of stock
Arts, life and health of a worker are important materials of any law on safety at work. As such, every act will contain more favorable provisions, taking care of safety and health of a worker. However, our money, whether in stocks or trades, if the subject is important in financial circles, it receives no protection provisions.
Safety standards in the workplace to specify certain expectations of all those responsible, for example, employers and managers, the 'duty of care'. It will be their duty to take, as far as reasonably practicable, such measures to ensure the safety of workers. The persons responsible must carry out a 'risk assessment' with the workers on all work processes before starting the work. This is the mandatory requirement of all premises licensed to work. Managers are required by law to work to eliminate or minimize the major risks.
What about our money invested in equities managed by banks, stock exchanges and other financial institutions? There is no protection and invest at your own risk.
Do not we realize that our money to make more 'risk' in these days with the financial institutions that the safety of workers in a factory? Who are the people responsible when we put our money with banks and stock exchanges?
Of course, these financial institutions are licensed. But, unlike a factory licensed, authorized these financial institutions do not need to embrace the safety of our money ..
Take the example of falling from height. Safety harness is a standard safety feature to prevent employee from fatal fall from a high altitude in a work environment. What provision of security is there when our money and stock values go for a free fall? Nothing ... the number of shares whose value was over U.S. $ 100 could fall to about U.S. $ 0.10 each, as witnessed in this financial crisis. Billions of money fell into the bottomless pit.
Thus, financial markets, despite his brainy minds, have no security for the money we've invested with them. They want us to accept that the free fall is due to market forces or dynamics. They should learn from their cousins production.
There, the manufacturing industry places the primary responsibility for safety on responsible employers or managers. The financial world should start before taking or exercising its role of responsibility for our money, rather than continue with the attitude of "invest-at-your-own-risk".
And 'required for the manufacturing industry to provide safety belts or safety net in case of accident free fall. The financial world must also provide a sort of safety net. They should stop putting excuses that the financial market is a free market - the prices go both ways.
The brains of the financial sector should rethink how hard our money with them should go one up and not down! There may be some build-in mechanism or safety net to prevent a free fall. And 'reasonably possible to make a safety net for our money in equities. An example of such a safety net is in the third image here
Properties of responsibility and deep thinking among financial gurus will lead to the development of financial instruments which have a strong growth but no risk, different from the current capital guaranteed products. This is bringing security to our money in financial investments .......
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