Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20
China Under Reporting Coronavirus COVID-19 Infections, Africa and South America Hidden Outbreaks - 12th Feb 20
Will USD X Decline About to Trigger Precious Metals Rally - 12th Feb 20
Copper Market is a Coiled Spring - 12th Feb 20
Dow Theory Stock Market Warning from the Utilities Index - 12th Feb 20
How to Get Virgin Media Engineers to FIX Hub 3.0 Problems and NOT BS Customers - 12th Feb 20
China Under Reporting Coronavirus COVID-19 Infections by 66% Due to Capacity Constraints - 12th Feb 20
Is Coronavirus the Black Swan That Takes Gold To-Da-Moon? - 12th Feb 20
Stock Market 2020 – A Close Look At What To Expect - 12th Feb 20
IBM AI Mega-trend Tech Stocks Investing 2020 - 11th Feb 20
The US Dollar’s Subtle Message for Gold - 11th Feb 20
What All To Do Before Opening A Bank Account For Your Business - 11th Feb 20
How and When to Enter Day Trades & Swing Trade For Maximum Gains - 11th Feb 20
The Great Stock Market Dichotomy - 11th Feb 20
Stock Market Sector Rotation Should Peak Within 60+ Days – Part II - 11th Feb 20
CoronaVirus Pandemic Stocks Bear Market Risk 2020? - Video - 11th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Greed, Fear and Market Manipulation as Wall Street Bonuses Rise

Stock-Markets / Market Manipulation Dec 21, 2007 - 04:28 PM GMT

By: Andy_Sutton

Stock-Markets Lessons of 2007 - Yesterday I had the opportunity to take a rather remarkable group of young people to a regional business competition. This was an actual competition, not one of these contrived events where everyone wins and hand wringing is out in full force. All in all, the group did rather well with one student winning her category, and two others placing 4th in a team event. For a group of 8 I was rather pleased. I also came to see the full scope of human emotion that ensued in the hours after the competition. The rest of us should be so lucky to have the life experience that transpired yesterday although I didn't realize it myself until those early hours of the morning when the world is silent and still and permits us time for reflection. 


We talked for a long time on the way home about investing oneself into something and how it is a risk. There is the very real chance of failure. In fact, there is the promise of failure for at least some of the risk-takers. We talked about how yesterday's experience was a microcosm of business and entrepreneurship. People take risks. Some get the rewards; others don't. The ones that don't have two choices: They can put their tails between their legs and quit or they can work even harder, invest even more of themselves, take another chance and hope to benefit in some way from their experience.

We also talked about fear and how it is a powerful and beneficial emotion, when used properly. It helps one to guard against complacency, act as a motivator, and keep us on our toes. Fear and failure are powerful realities of our world. Failure tends to cleanse us of unprofitable ideas and schemes. Anyone who has ever watched an episode of the The Honeymooners knows exactly what I'm talking about. Ralph Kramden is constantly coming up with money-making schemes, but failure (and his wife) always conspires to ground his efforts.

As the bus went silent, I could almost hear the wheels turning as we all contemplated. For me, it was a catharsis of sorts as I tried to frame fear and failure and reconcile them with the diametrically opposed mantra of the bailout mentality that exists at many levels of our world today. Clearly, the two cannot exist in the same conceptual space. How can it be that the cleansing effects failure has on our economy be applied only in certain circumstances? How can any system be efficient or successful when certain parties are relieved of risk and failure that is consequently piled onto other, often unsuspecting groups. This ties directly into what I wrote about last week when I spoke of the hidden and unseen risks that are running rampant through traditionally ‘safe' investments. The risk has been transferred from people that caused the problem to the rest of us.

For a long while now it seemed as if the only negative consequence of the mortgage situation would be injured balance sheets of corporations and debtors alike. It goes so far beyond that though. It goes way down the very fabric of our conceptions of fairness, equity and ethics. For some it will change our address, but for many others it will change our very way of thinking and how we evaluate risk and safety when contemplating financial decisions. Never before have we had to operate in an environment where the scales are so overtly tipped against us.

Another glaring example of this imbalance comes today in the news that Wall Street bonuses may increase nearly 17% to almost $21 Billion. This despite the fact that millions of Americans lost out this year. Thousands have lost their homes. Thousands more have yet to. Thousands more have seen the value of investment portfolios drop precipitously. Yet somehow Wall Street manages to eke out their bonuses. This should be an affront to the average person. It is certainly an insult to any sense of fairness or decency. The take-home message here is that we cannot expect honesty, decency or fairness in anything relating to money. News flash? Probably not, but the dynamics have certainly changed for the worse in the past year.

So how does this relate to an obscure business competition in Eastern Pennsylvania? It sets apart for us in crystal clear fashion the essence of our perception of risk and failure, and then shows us how manipulation and greed take these fundamentals and turn them on their head. Hopefully the rest of us are able to take a minute and reflect on our own paradigms and perceptions and gain some benefit as well. Best wishes to all of our readers and their families for a Merry Christmas and a prosperous and safe New Year. 

 

By Andy Sutton
http://www.my2centsonline.com

Andy Sutton holds a MBA with Honors in Economics from Moravian College and is a member of Omicron Delta Epsilon International Honor Society in Economics. He currently provides financial planning services to a growing book of clients using a conservative approach aimed at accumulating high quality, income producing assets while providing protection against a falling dollar.

Andy Sutton Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules