Monday, April 06, 2015

Want to Invest in the Stock Market?

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60 Minutes: Is the U.S. Stock Market Rigged?  
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Michael Lewis discusses his new book Flash Boys, an investigation into high-frequency trading. He describes how big investment banks take advantage of minute differences in share prices and internet connections speeds to skim billions of dollars from stock-market trading without taking any real risk. The former bond trader-turned-writer talks about how his relationship with Wall Street in a historic era of excess.
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Stock market rigging is no longer a ‘conspiracy theory’ March 25, 2015, New York Post
http://nypost.com/2015/03/25/us-stock-market-is-just-way-too-riggin-easy/
The stock market is rigged. With stock prices rushing far ahead of economic reality over the last six or so years, more experts in the financial markets are coming to the same conclusion. Ed Yardeni, a longtime Wall Street guru ... said flat out last week that the market was being propped up. “These markets are all rigged, and I don’t say that critically. I just say that factually,” he asserted on CNBC. Yardeni’s claim is the most basic one: that the Federal Reserve won’t do anything that will upset Wall Street and, in fact, is doing all it can to help the stock market. The Bank of Japan [has been] “aggressively purchasing stock funds.” The benefits, Japan’s central bank believes, will then trickle down to the rest of the economy. One American exchange has made intervention in — rigging — foreign governments easier and cheaper to accomplish. CME Group, the Chicago exchange that trades options and commodities, had an incentive program under which foreign central banks could buy stock market derivatives like the Standard & Poor’s futures contracts at a discount. S&P futures contracts are the vehicle of choice for rigging the market. There’s another kind of market rigging ... being done by companies themselves. Since corporate profits and revenues aren’t growing enough to justify current high stock prices, companies have been aggressively buying back massive quantities of their own shares. By doing this, companies reduce the number of their shares owned by the public [to boost] the calculation of profit-per-shares. Today’s markets aren’t fair [and] stock prices are artificially inflated.
Note: Don't forget that Bernie Madoff was once the head of the NASDAQ exchange. When it comes to international banking, it appears that almost everything is rigged. For more along these lines, see concise summaries of deeply revealing news articles about the systemically corrupt financial industry.
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Also See:
1929 Stock Market Crash
12 February 2009
and
Was the Stock Market Rigged?
12 May 2010
and
The Stock Market is Fixed!
27 May 2011
Remember the Market Meltdown? It's Going to Happen Again!
25 December 2013
http://arcticcompass.blogspot.ca/2013/12/remember-market-meltdown-in-2007-8.html
and
Stock Market Collapse is Inevitable!