The Market - A Bucketshop.

So, a fellow on Bloomberg was talking about Bucketshops this morning.

We modernised ourselves into this ice age.

Wikipedia on the Bucketshop.

Basically, they were businesses on the sidelines that would play bets with customers on the stock market, but were not actually connected to the stock market. It's as if I were to bet someone $50 on LDK to go up, and vice versa, but neither of us would actually ever trade a share of LDK, and certainly we wouldn't be regulated as if we were actually trading in the market. It's very close to what has happened with Derivatives in the last 10 years. A great many of them, Trillions of Dollars had no fundamental basis in any physical ownership of ANYTHING whatsoever. They're side bets, pure and simple, and many of those making the wagers had no ability to pay up in the case of losses. The idea of running bucketshops didn't stop when they were outlawed... it was expressed later by those that led the US Government to deregulate via the Gramm-Leach-Bliley Act, and it was implemented by the "Derivatives Desk."

Of course, the Bucketshop is illegal, but the insideous concept finds its way even into the regulated markets, by way of the DTCC. Is the DTCC just throwing your trades in a bucket in the back room? In some cases, at least, it certainly is; only, we the customers don't ever get to look behind the curtain to see for ourselves. Does the share that my brokerage claims on my account really represent a legitimate link to a physical asset? All I know is what my broker tells me. If my broker were a bucketshop, would it be obvious to me, the customer? Would they admit it?

The DTCC needs to get cracked open. Let's find out what's going on in there. The Investing Public has the RIGHT to know how the DTCC handles their PROPERTY.

Outrage by the Bureau of Land Management.

Citing Need for Assessments, U.S. Freezes Solar Energy Projects (1)

Faced with a surge in the number of proposed solar power plants, the federal government has placed a moratorium on new solar projects on public land until it studies their environmental impact, which is expected to take about two years.

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Ok, so, it's a given that Environmental assessments MUST take place in determining the uses of Public Land, but a MORATORIUM on Solar Installations on all Public Land is so irrational, that it can only be an intentional act of disruption, or suppression.

Per (1), the current Applications amount to One Million Acres of land. However, BLM oversees 260 Million Acres in total, of which 44,479,478 acres are under lease, and 11,629,625 acres are in production4. According to the Telegraph, BLM makes the claim that they will continue to process the existing Applications, which amount to a potential 70GW of production, or enough energy to power 20 million homes5.

Even Bush's own Executive Order 132123 should be read to require that these projects be expedited.


There is no valid rationale for a two year moratorium on Solar Development on Public Land; certainly not when it is already acknowledged that Energy Development is a fair use of that public land.

It's an outrage.

2. More Info on BLM and Energy Leases - Washington Post.

3. Executive Order 13212.

4. Analysis of BLM’s Oil and Gas Development 2001-2007.

5. US halts solar energy projects over environment fears - Telegraph.

Thanks to McOgon of Google, and peak_oil_101 of Yahoo for Links.

EDIT: Here's a CNN Special Report on this Story.