Why Wall Street is Destined to Fail
Dhammabucha Rocksprings Meditation
The IRS has just increased the amount you can contribute to your 401k. Will you take advantage of this, or will this again take advantage of you?
The common understanding is that your 401ks are invested in the stock market or invested in the various money market accounts. But are the markets no longer an investment?
Is the stock market, now, more of a gambling casino than an investment tool? Yes it is.
When you invest your savings in Wall Street, you are trusting that the investments of that 401k are being carefully considered by professionals weighing various corporate balance sheets to determine the best investment. This is not true.
Your money is being gambled.
The emphasis is no longer how a company will do long term, but what it will do within the next few seconds. It doesn’t matter what the stock is, or who the corporation is, or what the company has done or will do; what matters is if it will go up or down in the next millisecond. This is what your 401k is used for; gambling.
High frequency traders with powerful computers and algorithmic programs can make thousands of trades a second, and the faster the computer, the more money they make by getting one millisecond ahead of the next computer. This is Wall Street. This represents 70% of all trades. This is what you are contributing your hard earned money toward. The gamblers make great fortunes by gambling in this way.
Big investment banks pay their employees an average of over $300,000 in bonuses. When the banks failed in 2008 because of this speculative trading, you not only lost much of your 401k value, but you also bailed out the banks with your tax money. They were rewarded for their gambling, and they continued to pay out huge bonuses without missing a beat. Thank you Mr. and Mrs. Taxpayer.
The banks had such a death grip on the world’s finances that a bailout was necessary. Without it, the world economic system would have collapsed and a depression result. Now, after all this, Republicans are stopping any kind of restraints on these banks so that they can continue to gamble at will.
They will not be broken up and there will be no new regulations, because of Republican resistance. Republicans are the party of money, and they were not hurt. It was the poor and middle class that got creamed. If you continue to support Wall Street and the banks, then this scenario will repeat.
At some point, and that point is near, the gambling will get so ridiculous that the entire system will collapse and all investments will be lost. When your 401k is gambled, someone bets that you will lose or win. Then someone will bet that the one betting on you will win or lose. Then there is another level, and then another until the entire financial system is so intertwined in confused interrelationships that the first entity that can’t cover its bets will bring down the entire house of cards. This betting involves hundreds of trillions of dollars every day.
This crash will happen quickly, overnight, and the banks and Wall Street will have to close their doors. This means that you lose everything.
Most people believe that this will never happen. Many felt the same way in the Roaring Twenties. If this happens, the government will not have enough printing presses to help. You will have only what you have under your mattress, and hopefully that includes some gold. Money may or may not still be valuable as an exchange.
Article submitted Thursday, October 20, 2011 & read 75 times.
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» left by david from Magnolia, Tx (194 days 18 hours ago.)
I guess some things never change. My grandfather, a staunchly conservative man, used to tell my mother before I was born, so this was over fifty years ago, that he would never vote Republican because it was the party of the rich. Problem is since then they've purchased the Democrats as well. :-(» left by e (191 days 14 hours ago.)
Thanks Dave. Greedy people just lose it all anyway to their x'es and their new boyfriends! LOL.
