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Strategies & Market Trends : DAYTRADING Fundamentals

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To: KymarFye who wrote (15103)	2/3/2002 2:56:02 AM
From: Raymond Duray	Read Replies (8) of 18137

WHY TRADERS ARE TRASH Re: And why should traders be any less "permitted" to write about or otherwise "exploit" their lives and work than anyone else? Because to a large extent, traders add no real value to the real economy. They are simply trying to cut a slice out of the economic pie without adding value. Look at the example of Enron. Senator Ron Wyden this past week got some air time to describe the research of Robert McCullough of McCullough Consultants of Portland, OR. What Dr. McCullough discovered was that on December 3, 2001, the Western U.S. wholesale electrical forwards contracts fell by 30%. This is significant because it is so dramatic. The only "news" in the market was Enron's bankruptcy on December 2. Which Senator Wyden and I conclude to mean that Enron was causing a 30% excess cost to the purchasing utilties and thus to the consumers and businesses of the region. If you look at how this has destroyed opportunity in Portland, Oregon, you might agree with me that trading is a poison, and a parasitical imposition on the real economy. Portland General Electric is a wholly owned subsidiary of Enron. It forced a 40% rate hike on its customers recently. The result has been the closure of dozens of local businesses that can't afford the increase. Intel has cancelled its expansion plans in suburban Portland due to the increase. The job loss is significant. This is the result of "trading". Do you think trading has an evil, dark side? If not then you are either naive or very, very sick. Another example is the episode in October, 2000 when the price of oil spiked to $37.00 per barrel. OPEC Secretary Ali Rogriguez calculated in the trade press that the cost of speculators driving up the cost amounted to at least $7.00 of the price of oil. Was the economy well served? Was the consumer well served? I don't think you can argue that with a straight face. The problem with trading is that it is a non-productive and generally detrimental economic activity that is more destructive of society's wealth than accretive. Traders are trash. They are parasitic middlemen who contribute little or nothing to overall economic activity. That's why traders are trash. All the best, Ray

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