The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: John who wrote (43523)	12/1/2011 9:40:01 PM
From: ggersh	3 Recommendations Read Replies (2) of 71475

jessescrossroadscafe.blogspot.com Thanks to notorious lapses and the ideology of deregulation this is one of the most corrupt and treacherous markets I can remember in thirty years, or even read about except perhaps for a few of the pre-crash bubble markets. I think Ian McAvity has summarized this quite well: The big change has been the utter corruption of Wall Street and that nearly 80% of the trading on the New York Stock Exchange now is being done by high-velocity computers. When an investor puts in an order, it's basically one computer versus another computer operating in nanoseconds. That's why all of a sudden the volume is up or down 10 to 1 and you get a couple of hundred points added on or taken off the Dow in minutes. To me that's a corruption of the process. "Ethics" and "Wall Street" are words you never use in the same sentence. The trading mechanism is broken down. Leveraged exchange-traded funds (ETFs) are designed to consume the client's capital in leveraging and rebalancing premiums. The high velocity traders literally get the opportunity to "front-run" public orders as the order flow to "the market" is available to them for a fee. It's outrageous in the sense that they've legalized front running for those who pay up for the high-speed data feed. And then there's the initial public offering (IPO) business. Anytime the public can get shares in an IPO, they don't want it. If they can get some, it's only because it's not going to be that good a deal... It's the culture of greed coming out of the banking system. The Street always wanted to make money. That's never gone away. But there was a time when good clients were actually respected by a firm. A firm wanted to do well for a good client because it wanted to keep the family assets in the firm. These days a client is considered to be a mark. The system is designed to convert the client's capital into their fees and income as quickly as possible. The public is being chased out. There have been persistent outflows from domestic equity mutual funds since 2007. A lot of people justifiably don't trust it...

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