TL;DR
Meddling with regulatory bodies like the SEC and FTC via executive orders risks market instability and echoes past crises like 2008. Is this a repeat of history, where a lack of oversight leads to economic turmoil?
Story
Trump’s executive orders meddling with the SEC and FTC? Sounds like a recipe for disaster. History’s full of examples—Nixon’s price controls, the Enron deregulation fiasco—where government interference creates chaos. Imagine a game of Monopoly where the banker keeps changing the rules on a whim. That’s what this feels like.
These orders could cripple regulatory oversight. Imagine the SEC, meant to protect investors, suddenly having its hands tied. It’s like removing the referees from a football game—expect fouls, and lots of them. The FTC, our consumer protection agency, faces a similar threat. Who’s going to stop predatory businesses when the watchdog is muzzled?
This erosion of the Rule of Law is terrifying. It’s the foundation of a stable market. Crack that, and the whole system becomes vulnerable. Think 2008, when a lack of regulation fueled the housing bubble burst. Are we repeating past mistakes?
‣ Executive Order: A directive from the President that has the force of law. ‣ SEC (Securities and Exchange Commission): The agency responsible for regulating the securities markets and protecting investors. ‣ FTC (Federal Trade Commission): The agency that promotes consumer protection and prevents anti-competitive business practices. ‣ Rule of Law: The principle that everyone, including the government, is subject to and accountable under the law.
People are right to be scared. Losing your retirement savings because of political games is a nightmare scenario. Some suggest diversifying internationally, building cash reserves, or even just holding on for dear life. But honestly, in a rigged game, even the best strategies might not be enough. This isn’t just about ‘timing the market,’ it’s about a fundamental shift in the playing field. The referees are gone, the rules are changing, and the house always wins.
Advice
Diversify internationally, build cash reserves, and buckle up. When the rules of the game change, even the best strategies might not be enough.
Source
https://www.reddit.com/r/investing/comments/1it5dos/is_anyone_else_afraid_of_investing_given_all/