In the past year, and carrying over from the taxpayer bailouts of banks and industries such as GM, the amount of fraud and manipulation in every financial market is immense. No longer do the investor nor American people have protection by government agencies against market fraud, but in many instances, the federal government sides with the criminals to the detriment of the investor.
LIBOR, Bernie Madoff, MF Global, Peregrine Financial, zero-percent interest rates, the Social Security and Medicare entitlement funds, many state and municipal pension funds, mark-to-model asset values, quote stuffing and high frequency trading (HFT), and debt-based money?
The answer is that every single thing in that list is an example of market rigging, fraud, or both.
How are we supposed to make decisions in today’s rigged and often fraudulent market environment? Where should you put your money if you don’t know where the risks lie? How does one control risk when control fraud runs rampant? - Chris Martensen via Zerohedge
Knight Capital recently lost investors millions of dollars due to running a flawed computer algorithm used to skip trades and commissions for and against traders. The Fed pumps money into stock markets skewing fundamentals so that investors have no idea of the true worth of a company. ZIRP keep interest rates so low that it is no longer worth buying a CD, money market, or T-bill.
The wild west known as the global financial markets are not only broken, but controlled and manipulated so much, that only insiders have any ability to make a profit on the fraud and manipulation. For the common man, the American who simply wants to ensure his dollar today is worth a dollar tomorrow, the real money, gold and silver in physical forms, is the only playing field that one can hold in their hands while the paper goes up in flames.