Maybe Pakistan's Investors Have the Right Idea

Yesterday, in Pakistan investors rioted.

They began by breaking out the windows of the Karachi stock exchange and then stoning officials.

What set off this popular uprising was the 15th day of declining prices – bringing the total loss for Pakistani investors to 35%.

The Pakistanis are fairly new to the ways of modern markets. They don’t seem to realize that prices go up and down. They don't seem to understand that markets are supposed to be beyond the reach of public officials. “We demand that all stock prices be frozen at current levels,” said a representative of the Small Investors Association, perhaps speaking for small investors all over the world.

All over the planet, stocks have lost ground. The least of the losers, so far, is the United States, where the S&P is only off about 15% from its high. Aren't we lucky?

In Europe, losses are in the 20-25% range. And in China and Vietnam, investors have lost about half their money.

One thing for sure, the little guys around the world still don't get the point -- regulators always favor big brokers and investors. (Ask yourself, how many small investors take the regulators to lunch or hire lobbyists or big law firms to pander and represent them?)

I guess we should consider ourselves lucky since we seem to have gotten by (at least for this quarter) with just a 15% haircut even though major market declines can take 80% or 90% of your money.

Send your thank you notes to your favorite lobbyist in Washington D.C.

The Best Money Guy