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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Wednesday, December 05, 2012

Stock Markets That Flummox Masses Do No One Any Good - Bloomberg

I do not agree with this writer at all. The masses are not flummoxed by this. First, we do business with brokers and they handle the orders for us. Second, no one even knows of this stuff that is written here just the profession traders do. Third, the prices we execute at are better on average if there is more competition and order flow.

Howeverrrrrrrrrrrrrrrrrrrr..... The biggest problem that the public has with the stock markets is that it has become a gigantic casino, like we have here in China. The stock market is a venue to recycle savings. The theory is that if you save money, you get a return and can consume more at a later date. You put off consumption today for greater consumption tomorrow. But we have a central government and a central bank has pumped so much liquidity into the markets that there is no value in following the prices that the market offers these securities at since they are being inflated artificially by government fiat. The prices are inflated and people have no idea as to how much. So, what is the point of saving your money just use it all today and live off of food stamps tomorrow?

Stock Markets That Flummox Masses Do No One Any Good - Bloomberg


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