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Are you 'chasing' your losses?

• casino_king

  10 Jun 06, 16:58

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  Are you 'chasing' your losses?
  
  Friday • June 9, 2006 in Today
  
  Andrew PK Yap
  
  IN February, I wrote in this newspaper warning about offering credit to stock market speculators, “Who's going to take credit for gamblers' losses?”(Feb 21). Those sentiments seem clearly justified now with the recent sharp drop in stock prices.......
  
  That is to say, the broker can induce the speculator to trade any amount he wants without having any money in his account — as long as he clears the trade within the day (for up to 3 days).
  
  One cannot help but wonder if some of those in financial difficulties now will resort to less than legal means to obtain the funds. Or worry if the productivity of the companies of those in trouble will plunge. Or speculate if the $10 million allegedly taken by the lawyer from the client's account might have been linked to the market crash.
  
  The consequences are vast and deep. Now is the time to take action. If the Casino Act prevents loans and credits for gambling, similarly, no credit and unsecured loans must be allowed by members of the Singapore Exchange for trading in the financial markets.
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