SEC says CHEATING is ALLOWED

 

SEC says CHEATING is ALLOWED

There is a new game for The Wall Street scammer-jammers and the Securities and Exchange Commission (SEC) says it is okay.  The Wall Street crooks watch ordered trades to see which way the stock is moving and then go to the front of the line with this information and make an easy profit. 

People falsely assume that when they order stock bought or sold their order is executed instantly.  This never happens and in fact the broker (all brokers) can hold that trade and have many options before they make the trade.

If you are selling a stock that is listed on the New York Stock Exchange (NYSE) the broker can hold your trade for minutes before actually executing the trade.  So this is what happens the trades come into Wheeler Dealers Inc (GOLDMAN, et al).  The trades are automatically in the company computer system.  Call-in orders are entered into the company system too.  The trades being executed on the NYSE are going into the company system.  That system computes all pending trades and shows where to buy or sell to make money before the hundreds or even thousands of pending trades are executed.  The computer sees which way the price of a given stock is going and how many buys and sells there are.

If the computer sees a lot of buys at price above the current trading price of a stock the broker executes his own trade first and then executes the other trades after his trade making a small margin off getting in front of the other accumulated trades.

The computer is running at all times and analyzing all in-coming trades, both buy and sell, and feeding the scammer-jammers information no one else gets. 

The real crime here is very clear.  The Wall Street BROKER knows what all the pending trades are and then jumps in front to take advantage of everyone else.

This doesn’t just happen with stocks.  Everything that is traded is run through the brokers computer and analyzed and then the broker goes to the front of the line with assurance hundreds or thousands of orders will improve if not guarantee their profits.

This cheating has been around since the improvements in computer hardware and software and all big Wall Street firms have computer wizards continuously improving this software.

The SEC knows this is going on and refuses to stop it.  Remember that SEC is really just a bunch of Wall Street crooks on loan to the government.  These people are there to protect the companies they came from the will go back to for more money.

Most of the non-Wall Street regulators are against any regulations and turn away at the idea of stopping this cheating.  The Republicans love this system – they call it free enterprise for the rich.

The contributing problem is the concentration of wealth in the top 5%.  This income and wealth gap has grown over the past 30 years with extremely low taxes on the rich.  This excess wealth is being put into hedge funds for speculations and manipulation of the trading markets.

The IRS says the top 1% made on average $8.4 million and paid a 22% income tax rate.  This is a lower tax rate than a nurse married to a policeman.  Warren Buffett brags he only pays a 17% income tax rate, while those working for him and making far less pay twice that much.   

The Bill Gates and Warren Buffett type are demanding higher returns on their wealth and hedge fund managers are there to comply.

None of this creates new jobs, helps the economy and in fact it makes things worse because the wealth gap widens.

If you are in the market – GET OUT.  Only the crooks, scammer-jammers and swindlers can make any money in these crooked markets.

Matthew 22:39-40 

 

39"The second is like it, YOU SHALL LOVE YOUR NEIGHBOR AS YOURSELF.'

40" On these two commandments depend the whole Law and the Prophets."

Matthew 7:12 GOLDEN RULE -

12 “Therefore all things whatsoever ye would that men should do to you, do ye even so to them: for this is the law and the prophets.”

John 14:15 “If ye love me keep my commandments.”