May 20, 2010
The SEC and CFTC is wrong to blame Waddell for the May 7 stock maket crash. We are not responsible for the failures of the system. That's the role of the SEC and the exchanges
The country blames BP for not having an oil spill prevention plan that was reasonable to prevent a blowout. The media also tracks every movement of the sea bottom containment process and blames Halliburton and Transocean for their roles.
But looking at the May 7 stock market crash, why are we not blaming the SEC for it's massive and ongoing failures to oversee, regulate, and guarantee the integrity of the trading system? The SEC always screws up...ALWAYS Then they make excuses and minor fixes until the next screwup. Blame the SEC, not Waddell, because they continue to propose half-baked, partial solutions instead of admitting Chris Cox and High Frequency Traders helped destroy the system.
Mary Shapiro should resign in shame for her inability and unwillingness to do the right thing for retail investors.