http://market-ticker.org/archives/1165-Market-Gaming-Pressin-Their-Bets.html

If I am grasping this correctly, the huge "investment houses" are increasing their trade activity on the up and the down side of a stock, thusly hoping to hedge their investments.

But such trades are almost half the total volume of the NYSE, basically those huge banks can manipulate the prices of their holdings?

 

Like "central banks" purchasing our T-Bills, it's an illusion not genuine economic activity occuring in the private sector.

Exactly, and here is a new phrase for the lexicon joeyd

"Optimism Gap"

The investor class is not buying it, the "general public" is, somewhat.

 

IMO, you are not alone in that JoeyD, to me there is a class of investor out in America that is not going to drop a dime in any new investments due to a number of factors, not the least of which is the new status of Bondholders.

If a "sure thing" is no longer certain, and various initiatives are anti market, it does not take a genius to say "no thanks" no matter the inducements.

That is the Optimism Gap, the small companies that normally rely on investors to finance the "next big thing" have been disincentivized and that will only grow worse.

Over the next 5 yrs, with taxes and the new regulations as well as inflation, a investment must return a much higher level of profit simply to break even, that is unless there is a Govt subsidy.