The following article is emblematic of the reasons I feel that real estate should be a key component of any long term net worth building program.  Don’t get me wrong…it’s OK to put part of your money on Mr. Hare…I just think you should put most of it on Mr. Tortoise. -Rick M. Bean

From: Pittsburgh Business Times – by Patty Tascarella

 The Securities and Exchange Commission announced Tuesday that stock-by-stock circuit breaker proposals are being filed in response to the market disruption of May 6.

Stocks lost $1 Trillion in a half an hour?  That’s why I’m in real estate investing!  They’re proposing to limit losses to 10% in a 5-minute period.  Ouch!  To employ your wealth building strategy on a local level, contact us at Rose City Commercial Real Estate.  503.577.1034 or rick@rosecitycre.com

The national securities exchanges and the Financial Industry Regulatory Authority are filing proposed rules under which they would pause trading in certain individual stocks if the price moves 10 percent or more in a five-minute period.

The SEC is currently seeking comment on the proposal, which would take effect as a pilot program running through Dec. 10, 2010.

The fastest, abruptest market slide in Wall Street history plunged the Dow Jones Industrial Average a fraction short of a 1,000-point drop on May 6. The exchange regrouped just as quickly to a 347.80 point loss by the end of trading.

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It came down to an error stemming from a lack of communication between the six exchanges operating in the United States — The New YorkStock Exchange, Nasdaq, BATS, Direct Edge, ISE and CBOE. Each operates with different rules. So when the New York Stock Exchange put a hold on trading on a number of stocks, chaos ensued with traders and computer systems. The SEC has been meeting with the various exchanges to develop a structural framework for strengthening circuit breakers and handling erroneous trade.

“I don’t know if that’s the ultimate solution, but it’s a step in the right direction to avoid large issues like we just had,” said Dale Dominick, managing director of BenchMark Financial Network’s Pittsburgh office.

Circuit breakers could be “a good safeguard,” he said, “Until they figure out a better solution —if there is a better solution.  Anyone can make an error and it can cause a rippling effect through the whole industry.”