Investors Think The Markets Are Rigged

CNBC released a poll today showing that 86% of investors think the markets are rigged. The average investor feels that the markets are designed to benefit the big bank and are structured to intentionally disadvantage the small investor. Regarding the regulators, the average investor believes something between they are incompetent and they are on the take.

http://www.cnbc.com/id/39154764

I told you this was going to happen. The markets are rigged. The regulators are on the take, choosing to look the other way and hoping to later get employed by big banks. Americans aren’t stupid. And they are voting with their feet, as they flee Stocks for Bonds. I will post on the Bond Bubble later today – buyer beware in your Bond holdings.

High Frequency Trading Fraud (HFT)
FINRA has finally fined somebody over the practices of “Quote Stuffing”, “Flash Trading” and entering incredibly large volumes of orders with the intent of manipulating stock prices. I have been cranky about this for years, because I keep getting Limit Orders filled on the mysterious price spikes right before the markets ramp in the direction of my original position.

People won’t be comfortable with the markets until the criminals are not allowed to profit by messing with price, with the intention of screwing the little guy to their benefit. Now the conversation has to shift from speculation that prices are manipulated by computerized trading to the fact that we now can prove the computers are manipulating prices.

I expect a whole mess of “Whistle Blowers” coming out of the woodwork now that FINRA has issued a $2.26 million fine. How much money do you think a guy could make if he proved that Goldman, or some other bank were manipulating stock prices…

http://www.finra.org/Newsroom/NewsReleases/2010/P121951