If the following headline is true; Wall St start to new year worst in 25 years
By Chris Bryant in New York
Published: January 2 2008 13:58 | Last updated: January 2 2008 22:14
ft.com
The real reasons are Systemic;
1. Wall Street has been running a completely inside game, that has finally been confronted by inertia that was guaranteed to happen, from the current market structure.
2. In the absence of Supply and demand, There are no market prices.
3. The products of the market, shares of stock, have taken on a different life, they like the mortgages currently in dispute, have been repackaged as riskless instruments. They have been Derived and thus devolved by hedge funds, all seeking the same goals and apparently using the same few business plans.
4. Supply and Demand are disconnected to purpose outcomes favoring those doing the derivatives.
5. Wall street is failing its customers, by sustaining artificial control down to the individual portfolio levels.
6. Wall Street is violating its own lucrative terms of issuance, the IPO market is dead, and companies are disappearing by the month, now at the lowest in 10 years.
So, if the above headline is true, Wall Street has nobody to blame but itself, in cutting the deals its cut, they have essentially declared war on the individual investor.
The broker dealer complex is making its primary revenue from loaning individual investor shares to folks intent on deriving those shares into mathematical byproducts. Allowing the derived by products, to be priced by the pretense of prevailing systems intent.
Proxy product lines such as indexes, ETF's and ETN's are the soup du jour and the great hope of the derivative boys and girls, who know the true character of those products, is to stifle competition for the actual shares of the market.
What remains true, despite the above described conditions, is that the real owners of the largest % of all company floats are individual investors, and this class is only now beginning to wake up to the systemic character of the new and devolved wall street.
Welcome to 2008........ |
