For starters, why is the $35 search fee burden placed on me when the bank loses my stock? Neither bank bothered asking me for my new address. Did they really turn the stocks over to the US government, or did they stuff them in a secret account?
And if taxpayers have to cover any lawsuits stemming from the illegal actions against taxpaying citizens committed by NYPD officers working for banks, one also needs to know where their pay comes from.
Looking around, I didn't have to scratch much to uncover the fact that customer money gone missing is an old tune in the financial industry. Known for plundering clients' funds through "rehypothecation," financial services have gambled away clients' money on things like enormous $6.2 billion Eurozone repo bets.
Maybe I should be grateful that my loss is meager compared to others, like the $220 million in customer funds gone "missing" at a financial institution known as PFGBest.
Since the crisis of 2008, there have been many articles about where the money went. The most common myth is, If you lost money, somebody else did not necessarily win it because of price gaps.
Dale Jorgenson, an economics professor at my alma mater, Harvard, erroneously says that when confidence is drained out of a financial system, a lot of investors will decide to sell at any price, and a big chunk of that money you thought your investments were worth simply goes away.
Poppycock. It took me only a week of trading at the stock exchange to figure out that if I buy a stock for $50, and it gaps down to $10 where I sell it, the $40 I lost went to the guy I bought it from. We are so intent on looking to the branches for the next fruit when we win, that we forget to look at the roots when we lose.
And if the seller had inside information before selling it to me at $50, that is when theft took place.
Professor Jorgenson says the amount of wealth in the world "simply decreases in a situation like this." Wrong. The money changed hands. Who drove prices up in the first place?
What argument will they come up with to explain away the disappearance of the actual stock, now that it is no longer a question of price, but a grab of the physical contracts?
J.L. Morin is the award-winning author of "Occupy's First Bestselling Novel," TRADING DREAMS, also a #1 bestseller in 'Political Fiction' at Amazon, free from January 2-6, 2013, at Kindle followed by a live book talk on Second Life at 12 p.m. Eastern Standard time, January 6th, 2013.
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