posted on Apr, 5 2010 @ 12:49 PM
The stock market had become a casino, and a pale shadow of its former lofty aims.
In the past, the stock market was a means whereby capital can be obtained other than the traditional source of from banks. Investors chipped in to
invest in a company and hope to get a better dividend at year's end.
There was a belief that no one could move or control the markets, for it would require a huge amount of funds. Unfortunately, this belief was false.
It could be done. Just look at the sheer size of bank funds, pension funds and more recently Sovereign Wealth Funds from Asia and the Middle East, and
you see a casino in the making, with such powerful funds acting as the ‘house’ similar in a gambling joint, and as we all know in casino land,
the house will never lose.
When crude oil stock price shot up from avg $75 a barrel to an unconciable $147 within months, was it because of market demand, or institutional funds
jacking it up to con the individual investors to pay for CEO multi-million dollar bonuses? May the truth be known.
Majority of investors are mainly seeking for returns that can be above savings rate. Not many of them are gamblers nor have the stomach for it. They
seek only probably 9-10% annual returns, and trusted those institutional guys to take care of their portfolios.
Unfortunately, those institutional guys are gung ho cowboys, who trade for 9-10% returns – Daily!!! Keeping those DAILY profits made for
themselves, using other peoples’ money, and giving only in return 9-10% of such peoples’ money in ANNUAL one time dividends.
Such shuffling around papers is not doing economies any good. It encourages gambling hopes and furthermore, money is circulated into unproductive uses
in such cycles of ups and downs instead of creating value such as products and jobs where such funds are more needed there.
If Wall Street is allowed to continue biz as usual after this wake up call of a financial crisis, the cycle of unproductive shuffle of money will
hinder all recovery efforts, and set nations up for another similar disaster in time…..
Therefore, better regulations must be in place. Perhaps a narrower band of +/- fluctuations with immediate week suspension on trade for beyond daily
limits. for those who insists on making a living out of shuffling papers or paying return on investments such as institutional investors.
Otherwise not only the mom and pop investors get burn throughly, the economy and humanity may head downhill at the expense of a few rich but selfish
[edit on 5-4-2010 by SeekerofTruth101]