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No Words from the CFTC About the Regulatory Elephant in the Commodities Room [View article]
Has the Dollar Hit a Major Bottom? [View article]
Program Trading, Dark Pools and Gold [View article]
First time accident, second time coincidence, third time suspect enemy activity.
Program Trading, Dark Pools and Gold [View article]
"Capital markets" were to be places where capital could be raised. This capital could be put to productive use by a company bringing useful products to market at a competitive price. When capital is used productively, enhancing productivity, living standards are raised. I know this is econ 101, but do any of you believe that Wall Street even remotely resembles what I just described?
"Financial Services" is NOT a productive endeavor; it is skimming wealth from a cash flow stream. Capital markets CAN provide, or help to provide, productive capacity. But does market-moving hedge fund activity and the day-trading that feeds off of it via TA really add anything to the productive economy? I don't think so. To some extent short selling and other negatives add efficiency by detecting and exposing weakness, but some players are big enough to move markets, or market issues, by sheer size. The fact that they do so to their advantage and get away with it makes the markets a crapshoot and NOT a place where businesses can safely raise capital. This also renders the markets NOT a safe place where small investors can "invest" in the future.
There is so much obvious manipulation and cheating in these markets, and inaction by "regulators", that it's just not safe to play this game. Too many sophisticated ways for big money to game the system.
Once I figured this out I took my money and went home (in October of last year, by the way, DOW 13,000). I won't be back.