Every day, another flash crash
The technology that brought us the Dow 'flash crash' three years ago is causing small-scale panics more often than most investors realize -- and is moving high-profile stocks in ways that can cost you money.
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As of today there are accusations that the LIBOR rate has been fixed, that various investment houses and indeed entire countries are guilty of trying to corner metals markets for their own gain, including accusations of dumping huge paper metals contracts to make money on shorts, and a while back junk debt was graded AAA and even bet short by the same investment house too.
Frankly in this condition the markets should be off-limits to the average investor, since if you are not one of the big-time HFT players who may very well be offshore, you are basically just gambling with your investments there.
And the idiotic investment firms are STILL telling the little guy to "invest" in wall street.
I got out 13 years ago just before the tech bubble burst [lucky me, as I had closed my 401(k) and was in the process of changing jobs]. Sure I paid taxes and penalties, but it was HELL of a lot LESS than what I would have lost, if I'd have stayed in the market. Second time, I cashed in my 401 (k) when I retired put it into GLD in 2007--2009, cashed it out, and still made out like a bandit [even after taxes].
If you stay in the market, you'd better be prepared to lose, because this rise is being driven by helicopter ben pumping $85,000,000,000 and MONTH [that's OVER ONE TRILLION DOLLARS a year] and NOT by an improving, booming economy. The EXACT SAME THING happened from 1927 to 1929, so DON'T tell people it can't happen because it already HAS. Smaller scale, of course, in the 1920s. So, like I said if you can afford to lose the money, fine, go ahead. But DO NOT come crying when you lose it!!
"If this sounds to you like some illegal market manipulation is going on, you might be right. But only regulators can trace such trades, and so far at least, they've said nothing about these trades at all."
Sounds to me like there is no regulation. I wouldn't doubt if the "regulators" were in with the schemers. There is no "market." It's just some big flyers' money tree that they pluck when they feel like it.
The article says, "if the market appears to be fixed, small investors will stay away."
The market doesn't appear to be fixed the market IS Fixed!! When a large trading company has computers fast enough to step in front of somebody else's trade and cause them to have to pay a higher
price that is a fixed and unfair market.
All trading should have to go back onto the floor of the exchanges through humans. Give people their jobs back and slow the market down. Unfortunately, Wall Street will learn the lesson the hard way.
Just imagine the amount of money being skimmed off the top by unknown people. No wonder the Feds had to put trillions back into the economy.
In Obamaville, wealth is meant to be shared, and the state will ensure that you share it.
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[BRIEFING.COM] The stock market capped the trading week with losses across the major averages. The S&P 500 fell 0.5% to surrender its weekly gain, while the Dow Jones Industrial Average (-0.7%) and Russell 2000 (-0.9%) underperformed. The two indices posted respective losses of 0.8% and 0.6% for the week.
Equity indices were pressured from the get-go after several heavyweights disappointed the market with their earnings and/or guidance, which led to some broader profit-taking. After ... More
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