On or around the time of the July-August 2011 debt bargain discussions in Washington DC and the Standard & Poor’s downgrade of all US treasuries we watched the US stock market, and stock markets around the globe reacting to what was happening a deal with extreme volatility. Under these conditions, are generally times when investors lose big time or make incredible gains. Generally, it is the market professionals that are in the game and know the game, that ends up with all of the prize winnings.
At one point the Dow Jones industrial average went down 632 points in one day. It was the biggest drop since the 2008 market crash in a one-day period. The quantity of volume being traded that day has been in excess of the number of small-time investors on the market. That’s to say, those numbers were impossible, so unlikely and highly improbable to make one wonder. What was going on? Well, it is simple; the high tech trading computers using their sophisticated artificial smart algorithms were creating trades in microseconds, and tens of thousands of them per every 10 second interval.
On Larry Cudlow’s” Free-Market Capitalism” a show on CNBC Larry was speaking to a guest and suggested that it was a little out of control, and things were not fair to the small man, the individual investor. If the smalltime investor doesn’t feel safe or feels that the game is your rig, much like a slot machine in a casino, then why would they play?
I laughed because I was in the middle of writing this article when I listened to his own condemnations of high heeled trading schemes, and I completely agree with what he had been saying herebig99. Obviously, this isn’t the first time, though you’ll recall last year there was a significant flash accident when the machines took over, and that also rocked investor confidence, and the police and SEC have looked into the issue, but clearly has not fixed it yet.
When smalltime investors that have their life savings and their retirement monies at risk, all that they’ve ever made that uncertainty requires a toll. Not just on these, but also on the overall confidence, and that is not great for our nation because our stock markets are to assist capitalize American businesses. If they’re working, that triggers a huge issue. It’s too bad no one is addressing this problem or repairing it. Indeed I hope you will please consider all this and consider.