As a registered principal with the SEC with my own firm, and an investment broker for over 30 years, I saw plenty of shenanigans, manipulation, and fraud. But none of that is in any way comparable, at least openly, as is today’s fraudulent market movement.
The volatility these past few years has been remarkable, mainly because it could not happen at all unless controlled by inside and outside interests. The scope of the manipulative trading should have been enough for anyone to see the corrupt nature of it, but few have paid any attention to this criminal behavior. The fact that the financial “news” channels come up with an excuse every day, many times the same excuse that is used for a volatile up and down market for weeks at a time, is telling enough, but mostly ignored by the masses at large.
Just as one example, Goldman Sachs and Morgan Stanley’s trading profits are interesting to say the least. In the third quarter alone, this not counting the unbelievable volatility lately, and the fact that their share prices are down substantially for the year, trading profits are soaring for both. Goldman reported total profits of $2.52 billion in the quarter, with approximately $1.8 billion of that profit being net trading. Morgan had total profit for the quarter of $2.11 billion, with $2 billion of that being net trading profit. While core business is mostly flat, trading profits are higher, and make up most all of the profit for these two firms. How convenient!
One of the more interesting aspects of this obvious manipulation is the reasoning applied and reported by the complicit press. I watched for weeks as the same excuse for up or down markets with extreme volatility was virtually identical every day. In one case for weeks, it was the technology sector, and uncertainty. The problem though, was the reason given by the mainstream financial news channels never changed whether the markets were up or down. China trade problems were reported for weeks on end to explain the up and down markets and the extreme volatility. But that reason was given every single day, one day up, the next down. All with a headline that all movement was due to “China trade worries,” regardless of the direction of the market. They were better one day, not the next, and then it began again. This is astounding in that the fraud is so glaring and open, and it is apparent that people on the street are either completely ignorant or have no desire to look at the obvious and purposeful buying and selling meant to drive the market up and down every day for profit.
Keep in mind, that I only mentioned Goldman and Morgan, mainly because of size, but this is going on elsewhere as well. The normal investor has no chance anymore. In the past, at least one could own solid companies and ride the ups and downs, and still grow his investment over time. Those days are now over, and most likely for a long time to come.
As much as I loved my business and working with great clients for all those years, I am so very relieved to be out of that it today. I feel much better looking from the outside in, and not having to deal with this dishonest and corrupt market every day. I wish there were better news to report, but I believe this situation will get much worse before it gets better. Hold on to your hats!
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