Thursday, August 30, 2007

IS THE STOCK MARKET A CON?



I have been watching the movements of the Stock Market over a long period of time. Recently there have been some very large, very rapid movements. As the market plunges, billions of dollars are lost. As the market recovers billions of dollars are made. Question is: who is losing and who is winning?

I wonder sometimes if such frequent movements are not pre-ordained. What if certain wealthy individuals, amongst whom are media proprietors, were manipulating the market. Shock. Horror.

What if rich individuals and corporations quietly sold their shares when the market was high. What then if a few headlines were spread around newspapers and television channels, ones that questioned the health of the market or suggested that oil supplies might be threated or war might break out. It doesn't take much to spook the average punter because they can't afford to lose any money. Panic sets in and ordinary people bail out and lose lots of money! Then, as the market plunges, the big players quietly buy their shares again at greatly reduced prices.

What then if new headlines indicate that the market is solid or oil is gushing everywhere or war has been averted and there are great bargains to be had. Surprise, surprise, the market goes up rapidly and they make a fortune. This potential scenario could be run over and over. Seems an easy way to make big bucks, eh?

Do you have suspicions about the share market?

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15 comments:

betmo said...

no- i am convinced that they are manipulated. no doubts. these folks have crossed their ts and dotted their i's- the monied have always manipulated the money.

Daniel said...

Great to hear from you, Betmo. Money, like a candle, seems to attract some ugly creatures of the night!

Monica Thatcher said...

Oh Dear, Corporate share holdings manipulating the market? Who'd have thought! A world running on gossip. The worlds dealing rooms nothing more than branches of the Womens Institute. God help you if you upset someone....what a bunch of old women. My Uncle always used to say: "There's no money in working!

Monica

Nancy said...

The stock market is a gambling institution run by compulsive gamblers. It is Not the most secure foundation for a steady, sane economy. Why do we expect rationality in something that relies on superstition and 'hunches' rather than good solid facts? Why are stocks represented as good investments?
Many years ago when I lived in Britain, they would have a 'stock report' on BBC. It was about the sale of pigs and cows. Really. That's the kind of stock I understand. I also loved the announcer's name: Michael Pigstock.

Daniel said...

All wheelers and dealers should have the 'Pigstock' surname I reckon!

And the saying that, 'there's no money in working,' has the ring of truth to it!

Thanks Monica and Nancy. You've made my day.

Lucyp said...

I have no idea about money markets but i do know that the million pound bonuses some of these guys receive are obscene.

Coffee Messiah said...

You have to love the wealthy types, always taking advantage of someone losing money, so they can gain. ; (

Simplistic, but I'm sure you know what I mean. What a waste and that the media makes it appear it means something to the typical worker bee is outrageous.

Cheers to ya!

Daniel said...

Lucy, capitalism is obscene.

Coffee, the media are driven by the profit motive too. Truth and Profit are natural enemies!

Kvatch said...

Do you have suspicions about the share market?

Not at all. I think that you are dead on about collusion in manipulation of market forces. This is why investing for the long haul is even more imperative.

Wealth transfer through market manipulation only gets one so far. Eventually the turnips has no more blood, and then your back to the standby's of basic economic health, profits, and capital. These are what drive markets over the long haul.

Daniel said...

Kvatch, I've maintained for years that capitalism will bring about its own downfall.

If you keep reducing wages and/or moving your business offshore to exploit the folk of other countries, eventually no one will have the money to buy your goods and services!

Fleming said...

Daniel, I also have been watching the stock market for a long time, and I agree with you that despite protestations that "the market is too big to be manipulated", it is manipulated . . . not just individual stocks but the market as a whole.

In America in the first twenty years of the last century it was commonly recognized that stock manipulation was widespread and potent. Books written by stock market traders often dwelt more on the subject of organized manipulation than on anything else; the question was not, "Is the market manipulated?" but "How can I benefit from spotting the manipulation?"

The "reforms" and government controls that followed the 1929 Crash and the Depression were supposed to cure the situation, but manipulation as you describe it certainly continues.

No said...

I think Coffee Messiah said it best:

"What a waste and that the media makes it appear it means something to the typical worker bee is outrageous."

Yeah...what the hell does it matter to us worker bees anyway? I know the media is bought and paid for, but hell, shouldn't they too realize that most of us have absolutely no use for this bullshit?

Davo said...

"IS THE STOCK MARKET A CON?"

Short answer .. yes.

Anonymous said...

once you see the manipulation as a trader you can use it to make money so your are not going to complain, manipulation is at many level with in the market but the bank are the main ones just think if I was a banker then seen a trend start of bad loans on the books. I would short and sell bank stocks holding. then wait 18month for the goverment pays out all the bad loans then with all the money I made shorting buy the the bank stock back at 5% to 10% of the price I sold them for then retire with big payout

Daniel said...

Anonymous, your altruism is truly breathtaking. Then taking, I guess, is really your thing.

Cheers.

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