Tuesday, December 16, 2008

Stock Market Reality: Legally Crooked

For years I have been preaching about the crookedness of the stock market. I said that the stock specialist system was crooked, and I was proven correct over the last two years. When the specialist firms began to crumble under each government probe, I stated that the problem was not going to be solved. I stated on my website that one crooked system was going to be replaced with another crooked system. As one crooked entity goes out, another will take its place. The evolution of this process actually creates a more sophisticated system of moral corruption. While investors are made to believe that the expulsion of a crooked entity is a great accomplishment, they do not see reality through the illusion. As one crook is sacrificed by the system, a more evolved form of the virus takes over.

Unfortunately, the crooks of Wall Street operate with a license, an SEC license. This is what makes the whole system legally crooked. The issuance of an SEC license makes it legal while the lack of ethics and morality makes it crooked. The greed to make money by whatever means seems to supercede the satisfaction of being moral and ethical.

Consider that analysts are employed by brokerage houses and that many of these are now owned by banks and other major financial institutions. Do you truly believe that there is no problem with this system of doing business?

Consider also that the futures market which trades when the NYSE is closed during the night is traded on such light volume that people with capital power can easily control the price. Do you think that maybe there is not a problem with this? There are times when the overnight futures are either way up or way down. The media will always have an excuse for this. However, consider also that the stock market channels are also under the control of powerful financial institutions such as GE.

When all of these things are considered, you should easily realize that it does not require a master detective like the TV Columbo or Monk to detect a strong possibility of foul play.

The market is geared to deceive investors into doing the wrong thing. While at the top of a bull market, both analysts and the media get people to fully invest. While at the bottom of a bear market, it becomes the reverse. I find it amazing that both the analysts and the media may be employed by those who are doing the exact opposite of what the investors are being told to do.