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View Diary: "79% of investors have no trust in the financial system." (154 comments)

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  •  For most investors, financial markets are (12+ / 0-)

    nothing more than a casino, nothing more than a gamble.

    Ordinary gamblers, those who bet on horses and sports, place their bets with bookies who take a piece of each bet, and play each side against the other so that they will be able to survive an unexpected loss. Such a loss comes from a poor job of setting the odds by the bookie. Odds are not a reflection of the relative strengths of two football teams, but are instead measures of how the bets are going. The bookie adjusts the odds whenever the totality of bets show an intolerable weight for one side against the other. Odds show how people are betting. But still, the bookie is risking his own money, and, if he intends to stay in business he must cover his losses, and he must collect his winnings.

    But the big investment houses are better crooks than ordinary bookies. They actually control the game. They take bets from ordinary investors and collect a commission. Then they watch which way the bets are going and front run the cash flow. If the trend is up then they make more money than the trend is producing, and if the trend is down, the still make money while their clients are losing money. Then they can even manufacture games and deliberately structure the game so they know the outcome in advance. They then sucker the investors into playing the game while they bet against them. In the world of thievery, it is a beautiful thing. And, what is even better, if they lose their bets then they don't have to make good on their losses, because their confederates in the government will take money from people who did not even bet on the games, who did not even know that the game existed, and use that money to cover the losses.

    There is much more to this complicated con game, but I grow weary.

    Might and Right are always fighting, in our youth it seems exciting. Right is always nearly winning, Might can hardly keep from grinning. -- Clarence Day

    by hestal on Wed Jan 16, 2013 at 07:00:46 AM PST

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