Insight: The madness of Wall Street

Comments (16)
Eideard wrote:

Ask someone at the SEC about – at a minimum – a return to the UpTick rule. Much less human-based limitations on machine trading.

Mail me a penny postcard if [1] you get an answer or [2] they do anything useful.

Aug 19, 2011 8:31am EDT  --  Report as abuse
Majick1 wrote:

Ah yes the stock market, the biggest slot machine the world can devise. Yet another way for the rich to dig in the pockets of the poor.
Investors are betting on a companies success, simple enough, the company profits and you make money. Of course if you have enough money you can manipulate any stock. Buy slowly, dump all you have triggering a sell off, and buy again when the price is near bottom. The rich get richer and the company finances haven’t changed a bit. Yes there are rules to prevent that but remember you are dealing with the rich and they have no rules, they only apply to the little guy.
Now add the media to the mix, the true terrorists in the world, who have nothing good to report – “the market closed up today, but it will crash tomorrow” news is not what we want to hear.
I wish the “experts” had a bit of knowledge themselves but since they can’t even agree with themselves then I don’t think they are very expert at all.

Aug 19, 2011 9:03am EDT  --  Report as abuse
deerecub1977 wrote:

new and uncomfortable normal like how gas used to go up or down by a nickel or dime is now 50 cents.alot of people have been robbed through 401k.new and uncomfortable normal is an excuse to make the richard bigger.

Aug 19, 2011 9:15am EDT  --  Report as abuse
Gillyp wrote:

Walking away from the stock market looking for solid real investments …this thing may end up killing its self yet.

Aug 19, 2011 9:44am EDT  --  Report as abuse
Discovery451 wrote:

Computers have no judgement. They will sell Exxon down to a penny if the program instructs them to.

Aug 19, 2011 11:26am EDT  --  Report as abuse
surfish wrote:

They fvcked the goose that laid the golden egg.

Aug 19, 2011 11:38am EDT  --  Report as abuse
surfish wrote:

boycott the market.

Aug 19, 2011 11:52am EDT  --  Report as abuse
Greenspan2 wrote:

“Also if investors flee stocks it could make it harder for small, niche companies, such as ones in the biotech or clean energy sectors, to tap the public markets for capital.”
This is an admittance that the markets are broken, corrupt, and not functioning as intended to provide capital for developing companies. Regulation and trade taxation needs to be applied in order for markets to provide capital for corporate investment and growth and for investors to share in that growth. The markets now operate as mere casinos where algorithmic and insider trading merely transfer monies from investors to the pockets of traders. It is a broken system which is destroying the world economy and free market capitalism.

Aug 19, 2011 12:37pm EDT  --  Report as abuse
Greenspan2 wrote:

“Also if investors flee stocks it could make it harder for small, niche companies, such as ones in the biotech or clean energy sectors, to tap the public markets for capital.”
This is an admittance that the markets are broken, corrupt, and not functioning as intended to provide capital for developing companies. Regulation and trade taxation needs to be applied in order for markets to provide capital for corporate investment and growth and for investors to share in that growth. The markets now operate as mere casinos where algorithmic and insider trading merely transfer monies from investors to the pockets of traders. It is a broken system which is destroying the world economy and free market capitalism.

Aug 19, 2011 12:37pm EDT  --  Report as abuse
SayHey wrote:

The problem is that what has been old-fashioned “investment” has all but disappeared. In the not so old days, if you liked the XYZ Corp and its business prospects you would buy its stock because of that and wanted to be a part owner. That is long past – the market is now for flash traders, day traders, forward options, short-selling baskets,various other mathematical exotica, etc.- completely unproductive activity and truly more akin to gaming. wealth is not created by transaction costs.

Aug 19, 2011 1:43pm EDT  --  Report as abuse

This is an absolutely laughable article.

Aug 19, 2011 4:28pm EDT  --  Report as abuse
sorestloser wrote:

The purpose of the markets is not to create hedge fund billionaires. Its meant to facilitate investment. Nobody is going to initiate an IPO in this environment, hence the market is broken.

Aug 19, 2011 4:32pm EDT  --  Report as abuse
Dyota wrote:

Wall Street is dead, I mean moron will invest there ? It has become a big betting Casino, and you know what they say about Casino’s, the house always wins, except in this case there is no house! Harakiri you say, you betcha!

Aug 19, 2011 6:11pm EDT  --  Report as abuse
tom.joseph wrote:

The full faith and confidence in the market is in decline as this very fine article showed. This is extremely dangerous and computer based trading and corruption on Wall Street and in our politics is risking the entire economy.

There is a sense of the ridiculous in this as it is about nothing but trading. The underlining economy is healthier than the trading system and the corrupt games and schemes on Wall Street.

Something needs to be done before volatility turns into collapse.

Aug 19, 2011 7:23pm EDT  --  Report as abuse
systemBuilder wrote:

“And the danger for retail investors is they end up forsaking stocks and start seeking higher-yields in speculative investments that promise returns too good to believe.”

This is a laughable statement, because the poor returns from stocks have made them a TRULY speculative investment over the last decade !!!!

Aug 20, 2011 10:38pm EDT  --  Report as abuse

If high frequency traders are able to make money by creating wide swings, who is paying for their gain? Are they taking some of the long term value generated by the companies, in the form of artificial volatility, or is their gain coming solely from others who are also trying to time the market? This would be interesting to study.

Aug 21, 2011 10:27am EDT  --  Report as abuse
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