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What is Forex, what is investing, what is the future?

Origins of Modern Finance

We must reference regulations, because regulations are the framework that the majority of finance operates in. Theories, strategies, and products, which do not fit into regulatory framework, are only hypothetical.

Financial regulations are based on a series of laws created during and after the Great Depression, such as “The Securities Act of 1933” i and “The Federal Reserve Act (of 1913)ii and others. In 1933:

Technology: The modern day computer did not exist, nor did lasers, the iPod, stealth, satellites, and most importantly, the internet

Society: Roughly 2 Billion people on the planet compared to today’s 6.7 Billion. Hitler was coming to power.

Health: Life expectancy of the average American (male and female) was 59, compared to today’s 76. Since 1980, there has been a greater than 30% decrease in deaths due to Stroke in Heart Diseaseiii, presumably due to advances in medicine.

Finance: The derivative didn’t exist, markets were not electronic and real-time, and credit cards didn’t exist, nor did check cashing and instantaneous international payment.

You wouldn’t drive an automobile made in 1933 unless you are an antique collector. Most people wouldn’t drive a car that’s more than 10 years old. Most users wouldn’t use a computer that’s more than 5 years old. Banks are using state of the art supercomputers to run a 75 year old system – with origins over 200 years old. In fact, the leading banking computer is the mainframe system IBM System Z, originally developed as System/390 in 1964iv. While the Federal Reserve Act was enacted in 1913, its origins of design are much older, as the bankers who designed the Fed were influenced by the European system, dominated by the British Bank of England, originally established in 1694v.

In this article:

  • History of Forex
  • No Forex Model
  • Purpose of Capital Markets
  • Trading as an investment
  • Modern day hedge fund is a family farm
  • Who is to blame: regulators or customers?
  • Forex Forums a form of Self-Regulation
  • The Forex Metaphor
  • Forex Systems as an investment of the future
  • 95% of people lose money trading Forex
  • Financial Education
  • Forex lacks hard data
  • Forex companies growing fast
  • Forex Genome Project
  • Forex Myths
  • Conclusion

Author

Mauricio Carrillo

Mauricio Carrillo is a financial journalist, fintech executive, and inter-markets analyst with fifteen years of experience at the intersection of traditional finance and digital asset infrastructure.

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