I just read the business section of the NYT... well, at least one article, which is as close as I can usually come to a business section. I tend to think the stock market has nothing to do with me... like a lot of folks, I am learning with this recession that this is hardly the case; unemployment alone is effecting millions. Here in this article, super computers that manipulate the stock market are shown to have not just an unfair advantagous, but what should be an illegal method of making money off of everyone else for no other reason than that they can afford a fast computer, and others are letting them get away with it.
They use the computers to make huge buys and sells, pushing the prices of stocks up so they can sell at higher prices. They are presently responsible for half of the trading done on the market. Golman Sachs, who if you have not read, has been mysteriously (before this article) making money in the market. GS is exposed in a new Rolling Stone article as something of an evil empire with too much power. The claim is that they... manipulate the stock market. And here they are, still doing the same thing. Just because something is legal, does not make it right...
They need more controls on the stock market. If the average trader is going to be used by the super computers as fools to profit from, then why should anyone let them? If I was a stock broker, I would be crying foul, man. How can the government let GS get away with something so blantly bad for everyone in the world? You have to wonder.... has the country just always been prone toward believing so much in the magical hand in the stock market that no controls seem to be needed? Well, we know now that the invisible hand that is supposed to take care of everyone, is actually a computer that is enriching a few people at the expense of billions, and justice.
This is akin to letting a card counter play poker with amatuers. OF course the card counter is going to win. They need some kind of reforms that are beyond me. If nothing is done, a few companies with these computers will end up doing all of the trading. They will basically just be set up to pass stocks back and forth, reaping profits from trading fees. This kind of thing was done during the savings and loan scandal, where rich investors sold worthless peices of property back and forth to drive the price up, then sold it... and we ended up with inflated prices on property, huge loans that made no sense, and a world wide recession. Surprise, surprise...
If I believed in a conspiracy on these matters, I would say look at this shit, the fix is in on the average guy, and whoever is behind that kind of power, would have to be in the elite of the elite...
Instead, I tend to think this is blind luck backed up by blind power. That the problem is fixable, and not something held together by the dark forces of satan or bilderbergs or whoever... Only time will tell. I would not even know about this, I suppose, if people in a position to do something about it were not also aware... so, what will the suits do on this one? You can bet that the future of the stock market, which means the future of your economy, is at stake here. Where do people think this money came from at Goldman Sachs, by the way? Well, they use these computers to suck that money out of others who are playing the stock market -- people who are in control of your 401k...
Very disturbing. Class war of a sorts. The middle class investor is sure as hell getting screwed without lube....
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