As documented by Zero Hedge, manipulation means that the market no longer performs it’s basic function of price discovery.
By Daniel at 16 December, 2009, 10:53 am
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Under those circumstances no rational investment decisions can be made.
Making money simply depends on how ‘connected’ you are, and insider information.
In this context the truly remarkable performance of Goldman Sachs can be evaluated - they did not loose money on any single day of trading!
Investment even in the ‘Masters of the Universe’ is still difficult though, as the profits are skimmed and any losses craftily avoided by the traders, leaving them to the taxpayer or non-insider investor.
On top of that, it is not clear when the whole Ponzi scheme will collapse, the only certainty being that it will, as the banking sector and it’s risk taking including derivatives is quite unreformed.
We now also have the joys of FME etc handing out mortgages entirely regardless of ability to repay, on the taxpayers dime.
None of this ends well.
- Davewmart
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