People who believe Wall Street or the Financial Industry give one damn about the interest of the shareholder or for that matter the interest of any country, think again. They don't. Specially today, the enormous volatility in the market is a day-traders wet dream. Due to today's market volatility, you can't swing a dead cat without hitting a stock making a 10%-40% move in one day. You've got large numbers of companies stock like Goldman Sachs, making 30% moves in a few days. One often doesn't realize how incredible that is, major stocks like those mentioned aren't supposed to move like that, they're supposed to be steady, safe investments.
Today selling high, buying low and making a killing on the margins is the name of the game. Unfortunately most, if not all of the profits go into the traders and their company's pocket, not in that of the shareholder.
Today selling high, buying low and making a killing on the margins is the name of the game. Unfortunately most, if not all of the profits go into the traders and their company's pocket, not in that of the shareholder.
Working in the financial Industry has also become extremely popular. Economics and Finance students at Cornell University say its a well known fact that after five years on Wall Street, you could expect to be making half a million a year in salary and bonuses; after 10 years you could expect a million or more.
Unfortunately as the size of the financial industry grew, the original purpose of banking to allocate capital to its most productive uses has been forgotten not only by the bankers, but probably by the public as well. According to Jeff Madrick, who wrote "The Age of Greed: The Triumph of Finance and the Decline of America, 1920 to the Present", the current system that pushes the socially beneficial goals of the industry to the periphery only encourages greed. Now, banking shifts money around the world while rarely increasing market efficiency.
Financial advisors in major trading companies enjoy dealing with derivatives and often funneling income to offshore holding companies, so rich people and corporations don't have to pay taxes. These trading companies have lawyers on retainer in the Cayman Islands and Jersey – and a quick phone call to them will set it all up, no more taxes for their clients. This is not what the financial industry should be doing, this is basically criminal behavior.
Like one Wall Street analyst said: "Governments don't control today's world, Goldman Sachs does."
To prove the above point also see the BBC news clip "Financial Armageddon Imminent 2011"
As for those who continue watching and listening to those fast talking, so-called, financial "Gurus" on Fox News, CNBC, CNN and other corporate owned News Media, please take it for what this really represents -Corporate Orchestrated Populist Financial Reality Shows.
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