It's a not so fond farewell to Wall Street's yellow brick road. The curtain that hid the Wall Street fraud has fallen with a $33 Billion thud.
It's a not so fond farewell to Wall Street's yellow brick road.
Today the New York Times reported that small investors pulled the plug on Wall
Street. (In Striking Move, Small Investors Flee Stock Market)
Individual investors sold an amazing
$33 billion dollars in equity invested U.S. mutual funds in just the past seven
Credit Suisse said small investors are
losing their appetite for risk. Nice spin.
Dorothy Pulls the Curtain on the Wizard by Warner Brothers Entertainment
But how can that be? Corporate profits
are through the roof.
I said the market will have a serious
fall once the Fed jerks the interest rates up.
Richard C. Cook,a writer for Global
Research with 20 years of experience at U.S. Department of Treasury,
took me to task for this statement. He reminded me that the Fed is
committed to not raise interest rates for the foreseeable future.
So, the cheap money has and will
continue to flow. The logic is infallible. If money costs little to
nothing, why not invest it in equities of cash rich corporations with
a fantastic up side when the economy recovers?
Is the small investor so dumb he and
she doesn't get this?
No, it's not that individual investors
are risk adverse. There's something else. What could it be?
The curtain that hid the Wall Street
fraud has fallen with a $33 billion thud.
Those of us trying to save for college or retirement are afraid of theft. Past stealing, present
stealing and future stealing.
Small investors have finally woken up
and smelled the putrid coffee that's been simmering for decades. Long
term investing fail to yield anything but loses. But we've been told over and over again that you cannot time the market.
going on? Why does Wall Street have all the money? What do these
people do that they deserve more than single digit revenues from the
GDP? Who was looking out for us?
The answer came back. It was short and
You're the mark in this con game and the fix was in
big time. Not only did they take your investment money, they
destroyed the economy, took your job, and whacked you once more with
a taxpayer funded bail out.
Forget the fact that some of that money
is being repaid with interest, your job, your life are in ruins. Let these crooks keep your hard earned money? We may be a little slow, but we're not crazy.
The Corporatoracy did nothing in the
recent financial reform legislation to fix the problems: unchecked
fees, computer trading, spread manipulation, corporate accounting
transparency, exorbitant executive compensation, high speed trading,
insider trading, et cetera. It's all the same thing, stealing and
Bernie Madoff's scam was peanuts in
comparison, yet we have not seen one perp walk for the criminals
In November of 2009 I wrote Six
Reasons to Screw Wall Street Now.
I'll say it again. You've got no business in the stock market as an
individual investor with out connections to the criminal network
that runs the joint.
Chaz Valenza is writer and small business owner in New Jersey. He earned his MBA from New York University's Stern School of Business. His current feature film project is "Single Point Failure" an insider's account of how the Reagan Administration caused the greatest tragedy of the space age based on Richard C. Cook's book "Challenger Revealed." He is a former Director of Public Information for Planned Parenthood of NYC. His website is: www.WordsWillNever.com