With sixty-five percent of U.S. stock trading
being high speed exchanges held for as little as a millionth of a second the
financial and banking sector has gained the upper hand in skimming U.S.
business for profit. Instead of corporations being purchased or selling stock
to enhance production they are simply large chunks of capital that can be
finessed for a quick buck. Several foreign nations and even the European Union
have introduced legislative proposals to put a firewall in the deconstruction
of business logic.
One wonders if even Mitt Romney
as President would have the business skill to lead reforms that would
set America on a course of reformed capitalism in favor of free
enterprise. A New York Times article on the topic Thursday 27
September 2012 reported that Canada has already moved ahead and passed laws
that will govern the 'dark pools' and exchanges a little better.
In dark pools stock can be traded without being reported so long as its price is higher than that publicly listed. Obviously if positions are not held for even Five-hundred thousands of a second, but for a millionth of a second and sold to take advantage of the electronic fluctuations of the stock value the process might not only adversely affect stock trading because of the large quantities involved, put investor capital at risk too, but also provide a rationale for the investments that has no concern about making a more competitive widget at ACME Manufacturing but instead is simply exploitative.
In dark pools stock can be traded without being reported so long as its price is higher than that publicly listed. Obviously if positions are not held for even Five-hundred thousands of a second, but for a millionth of a second and sold to take advantage of the electronic fluctuations of the stock value the process might not only adversely affect stock trading because of the large quantities involved, put investor capital at risk too, but also provide a rationale for the investments that has no concern about making a more competitive widget at ACME Manufacturing but instead is simply exploitative.
One of the downsides of irrational in relation to
the well-being of a target corporation high-speed super-computer guided
quantitative trading by heavily capitalized Wall Street and foreign firms is
that the world is viewed economically through different glasses than normal
human beings with interests in economic stability and wherein a logic for
progressive product inventions is implicitly a strong point of capitalism and
free enterprise.
The United States will be at a serious
disadvantage when it's manufacturing and corporate sectors are open for
unrestricted-high speed quantitative trading while those of other nations
including China are either entirely closed or in the processing of slowing
down. The unemployed U.S. worker is simply a spectator in the volatile
high-speed trading world, or would be if it weren't conducted in countless dark
pools and thirteen exchanges in a time interval far faster than the blink of an
eye.
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