The stock market has just experienced its third largest decline in history.
Since this is an appropriate time for determinations of government and exchange policies and discussions of ideas, perhaps the following are of interest:
1. The stock market decline of Oct. 19 was a response to excessive greed for stocks that were only yielding around two percent. It was not due to weaknesses in a system reflecting 150 years of experiences.
2. There was a failure by the Federal Reserve to issue a public warning and dampen stock market psychology by increasing stock margin requirements from 50 percent.
3. There is a need by futures exchanges for scale margin requirements-increasing with the size of the futures positions in an account.
4. Floor brokers should be required to fill orders only for the public, or only for themselves.
5. Future markets will become more stable if 24-hour maintenance margins are required for day trading positions.
6. The financial strength of ”The Street” will be improved if full cash deposits are required in stock accounts before buy orders for stocks are permitted.
