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ProShares Ultra Real Estate Message Board

  • sassped sassped Apr 26, 2010 2:27 PM Flag

    Derivatives and URE

    Any of you smart guys have any idea what raining in the crooks on wall street....what effectregulating derivatives will have on double long URE?? I want max exposure to real estate...

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    • MMM_64Slices_of_American_Cheese MMM_64Slices_of_American_Cheese Apr 29, 2010 10:00 PM Flag

      I had been thinking about this as well..... if leveraged ETF's actually invest in the derivatives of the underlying equities, and there is impaired liquidity in these markets, perhaps this can widen spreads and drive up the expense ratios of these ETF's. A minor effect perhaps. Of greater importance may be the deleveraging and consequent draining of liquidity.

      Not sure what will pass in Congress in the final bill, but what is going up for debate is rather agressive.

    • yes, crooks on WS and the govt. betting houses were elimintaed after the depression. states had laws forbidding the same. the feds made it legally again and the fed law superceeded the state laws. there was nothing illegal about what happened. there are ethical issues with what happened. the issues WS is in bed with both democratsa and republicans. congress passed laws and pushed practices that allowed for the economy to crash. business only did what was legally allowed. I doubt derivatives will impact ure. the senate is having issues with passing financial reform. most of it is probably a good thing, but there are always those ammendments that are eclusive and protect the voting base. the real issue is congress no longer applies legislation equally. the top and the bottom generally benefit the most....the top because of the financial backing and the lowest because of sheer voting numbers. The ones in the middle are left out and foot the bill.

    • No one really knows for sure at this moment. In the event that URE is closed down, you could still play options on IYR to get max leverage.

    • Not that I agree with the , "crooks on wall street" comment totally(crooks & misguided dopes in government is more like it), but the question about derivative legislation is good. What will happen to leveraged etf's? Will this be good or bad or a non-factor? Anyone?

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