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An honest look at the personal finance crisis | Elizabeth White



After the early success of those Dutch pioneers other countries soon began to see how they could copy this new trading model. Perhaps the most successful were the English with the London Stock Exchange. The LSE even today is acknowledged as the leading stock market in the world. It was to London that the first American Secretary of the Treasury, Alexander Hamilton, turned when he wanted to begin development of economic power in the New World. Let's take an example of the silver markets about 30 years ago. Two brothers Nelson Bunker Hunt and William Herbert Hunt decided to corner the silver market along with some of their business associates. They succeeded in driving the price up to around $54 an ounce before the authorities changed the rules on margin trading. Think of something as simple as an accident, it doesn't even have to be your fault, and you get hospitalized for a couple of months. Do you think while you're laid there in your hospital bed it's just possible that making the payment for your credit card bill might get forgotten? And what happens when you forget your monthly credit payments? Now what happens is that because the money they are lending you is outstanding for a longer amount of time they can charge you more interest. See what I meant when I said they don't care about you? Of course from your point of view you are probably going to be benefiting by having lower repayments, less worry and you'll get your credit history back on track. While markets fluctuate and at times quite wildly they do tend to rise over time but that won't help you if you need to get your hands on your cash the day after tomorrow and the market's in freefall. As with anything else it's vital to understand the rules of the game and how they apply to the position you are planning to take. They can begin their portfolio with as little as $25 per month to find out if it's something that suits them. For those who have decided that they would like to go for the full blooded approach of buying stocks and shares directly they need to have between $3,000 and $5,000 if they want to use a full service stock broker. 

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