Real Time Markets vs. Synchronized Markets

Abstract

I have been suggesting that live video streams should be mandated for all public companies. Simply as a reinforcement to the financial statements. The status quo is that people are taking the rating companies to court. This is further evidence that there is no confidence in the markets. A few years back I set up a web page describing my new standards for accounting. Fundamentally I discussed the definition of REAL TIME MARKETS. In 2009 the term real time refers to SYNCHRONIZED Markets. Real Time should be immediate and responsive valuations in the market to live events in the companies or economies.STOCK PRICE FALLING SCENARIO: COMPANY XYZ TRADES ON THE NYSE:THE DATE: A chilly January Morning in 2010. The Snow is falling but all the employees are hustling to get into work. The siren sounds as the workers punch the clock. Moments later they are at their work stations and the place is humming like a well oiled machine. Everybody is doing their job systematically...FROM HEAD OFFICE IN LONDON At the same time (Its 6 hours later GMT). Management is having a meeting and they pulled up the security cameras for the plant that just came online in the USA. The Meeting is about critiquing the layout of the plant to enhance efficiency. So they are all watching and commenting about different camera angles.At the same time: In Washington DC The SEC is searching through the Video Archives verifying that the assets on the Financial Statements actually exist. They are using the Video Search Engine to quickly go through months worth of footage. They also used The Audio Search Engine to verify and scan for conversations about the issues in the financial statements. In Tokyo an Investment Banker is considering investing in the company as he watches the trucks deliver the products to the shopping mall. The Malls looks full and the stores are making sales so the Japanese investor is excited about making the investment.BACK AT THE PLANT 3 hours later A HUGE SOUND GOES OFF LIKE AN ALARM. There is a fire at the plant. People are screaming and running out the door. The room is filling with smoke. The cameras can't make anything out. The audio is hard to make out without the NATIONAL INSTRUMENT LAB VIEW scanner. However, Its clear THAT THEIR PANIC IS IN THE AIR! Back in LONDON Management maintains their cool. They call both the fire stations and they alert the local management in the MANUFACTURING PLANT USA. They were still watching the action at the manufacturing plant. BACK IN TOKYO The investment banker set his alerts before he logged off and went to bed. Any deviation from the normal sounds of the manufacturing company, he gets alerts in text messages (sms) and email. So now he is awake in the middle of the night checking for the alerts. With one click he is on the video stream of the fire in the MANUFACTURING PLANT. He decides to sell the stock short because their is obviously going to be a delay in the manufacturing process. Which means the products will not make it to the shopping mall in time. The delays will hurt company earnings. In Washington DC. the SEC documents the event. END OF SCENE STOCK PRICE FALLING SCENARIO.