Obi-Wan Kenobi
/ 178.36.128.* / 2010-05-28 12:27
I'm starting to wonder what purpose Wall Street serves at all any more. We don't allow gambling in my state, so why do we have to allow a crooked casino to sit atop the economy?
You don't need to subpoena meeting notes, nor a business plan, nor confirm "hallway conversations". Rather, look at "profitable trading days" for the banks at 100% of the time (suspicious by itself), and compare with the stop-outs and failures associated with "recommendations" by the firms for their clients.
The "recommendations" are easy to quantify regarding "value". They have been *so bad* lately that one of Tyler's classic quotes was something like, "Have Mercy on your clients and shut-the-f*ck-up!"
In short, a *very* simple statistical analysis shows that banks screw their clients, and keep the profitable trades to themselves. Further, IMHO, they intentionally mislead their clients so they can front-run the trades. Further, bucket shops work best when your client buys crap, you don't do anything, and you clear high profits since you never executed in the market (the whole purpose of the dark pools is to take the *other* side of the transaction, netting profit when the client loses).
Is this on purpose? Or by accident? Doesn't matter. It's true, and statistically demonstrable with a high "R-value".