March 19, 2020
Dear SEC:
Why do you always want to change the rules when individual investors find a way to profit when the big Wall St. guys screw up. They may be smart, but they are never nearly as smart as they think they are. Remember Goldman Sachs and the muppets.
At that point the cries for bailout ring out. privatize profits Socialize losses Undoubtedly, this is the first salvo in the new repeat performance of this script. If this is indeed the first salvo, it would be appropriate to do the bailout differently this time, bailout everybody. Otherwise, jail the reckless leverage junkies.
As for leveraged mutual funds, they should be allowed to go to zero, as happened with that XIV fund a year or two ago. Capitalism is supposed to discipline speculators. That happens when it is allowed to do its discipline job. If going to zero in a customer account is not sufficient to pay the incurred losses, that additional loss should come out of the offering mutual fund companys capital. They need some discipline too as far as the products they offer is concerned.