Financial systems have changed dramatically with the advent of computer technology. It has allowed ease of access to your banking, and investment information. We now have the ability to deposit, and transfer funds instantly, and electronically.
Unfortunately, it has also allowed a lot of growth in corruption at high speed!
High speed trading, using super computers provides the big players with the ability to manipulate the market easily . Market volume can appear to be high where in fact it can just be an enormous number of trades for small amounts of money. The use of super computers and sophisticated software has given the big banks, and investment houses great power. By using super high speed computation, and analyst of financial information they can influence the price of stocks, and shares at will.
In my opinion it has become a very uneven playing field for the small investor. It also appears that by the use of power, and money these large banking, and investment organization have been influencing politicians to remove a lot of the institutional checks, and balances that where put in place to protect everyone.
Have a look at this 60 Minutes program to get a lot of good information on what you are up against if you are a small investor.
60 Minutes on CBS News: How Speed Traders Are Changing Wall Street - Steve Kroft Gets A Rare Look Inside the Secretive World of "High-Frequency Trading"
Another import issue that I have been seeing in stock, shares and commodities markets is more and more use of virtual products. The gold market is a case in point. Gold is commanding large amounts of money at present ,and investors are purchasing gold in large volume all over the world. The trouble is that the volume of gold that is being traded at present is 45 times more gold than is psychically available.
That means that if every one who purchased gold wanted their bars at once, only one in 45 could possibly get the purchased gold! Now the informative link below clearly defines what most people are actually purchasing is paper gold.
Here is a definition on Paper Gold from site https://www.igolder.com/glossary/paper-gold/
How can we have a system base on this virtual gold, and not the real thing?
How is this allowed to happen?
In my opinion lot of people are going to get burned if, and when the music stops.
If that is not bad enough here you have reports of a lot of fake gold bars in the system.
Fake gold bars out of tungsten a counterfeit story By MERLIN LAFLEUR, 2009/12/02
12 Nov 2009 ... Gld ETF Warning, Tungsten Filled Fake Gold Bars :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website.
The only way I can see that this has been bought about is by our government officials, and politicians changing the legislation, and rules to suit those who run these markets. The politicians and government officials must have great retirement funds.
Mortgage Gate is another example on the creative use of computer technology by the corrupt. It has been used to manipulate the financial system, and create financial havoc worldwide. If you wonder why your retirement funds, and superannuation have gone backwards here are some more examples of the creative use of computer technology to create mass fraud of epic proportions. Sell something ten or more times to different organization, and class it as an AAA investment.
http://www.zerohedge.com 21 Oct 2010 ... The mortgage gate crisis and the coming wave of “Mulligan Mortgages”. ... If you are suddenly being offered a new mortgage by your bank.
Computer technology has changed the way financial systems work, a lot of what is being offered for sale as an investment, or commodity is no longer real but a fictitious virtual item of no real value. So I would suggest that if you are investing in anything, you make sure you are really purchasing something of real value. A lot of this information is not provided by the main stream media, so you need to do your own research on your subject of interest.
NOTE: This article is in no way intended as to convey any financial advice on behalf of the SCCC inc., or Peter Daley. It is for information purposes only.
© Peter Daley 2010
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