January 12, 2012
i am against the exchanges offering ANY rebates to anyone for "adding liquidity". no one needs an incentive for this. i think this is a primary driver for HFT/high frequency traders, which are taking $ OUT of the stock market. thus, it hurts investors.
stop giving HFT and brokers incentives. no wonder our stock market is so skewed toward trading, rather than investing.
this type of a rule is anti-free market. it is anti-transparency. it favors the trader over the investor.
stock markets are for investors and capital formation. traders are a parasite on the capital market. traders don't need incentives to trade. this type of a rule removes risk for the trader and puts it on the backs of the investors. this is a GRAND wealth transfer. how could financial firms afford to stay in business? they are selling short and not following rules. that is the only way anyone could make $ in the market during these times.
just what do traders produce? profits for themselves. they don't control means of production. they take $ out of the pockets of the investors. this, in turn, affects the company balance sheets, which affects the standing for financing and investment activities of the company.
no wonder investors are leaving the market. there are too many people trying to take their hard-earned $, trying to take their retirement nest eggs. the safest place, right now, is under their mattress.
i DARE the financial services firms to oppose my arguments. while there might be a fleeting headline, if the SEC takes a stand, there would not be an outcry. the public would not understand the issue sufficiently and there would be NO RALLY to help financial firms because the perception is that they cheat investors.
do the broker audits, make sure that the shares they hold for the customer are really shares and not imaginary shares, and the public might feel more confident in investing. check for counterfeit shares.
the market trend for the last several years has been downward, in spite of the $ that goes into the market during this time period. that means that people are taking $ out faster than people can invest. follow the $. it's a global phenomenon. the governments do not benefit, because largely taxes and revenue are not increasing. it's a capital OUTFLOW from everywhere. and wherever the $ is going, the governments are not receiving it. these people are greedy and they don't want to pay taxes on it. they are cheating the government, investors, everyone BUT THEMSELVES.