I told you guys he was a moron
The People vs. Goldman Sachs
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People know when something is going wrong or too cheap and will start buying when things hit the fan. Computers just sre a sell off and keep selling. This is what happened during the flash crash last year.
Long Term Capital Management is a precursor to what happened in 2008. Go read "When Genius Fails"
I know, I just can't get over how insightful and switched on you are.
Serrrrriously we'd be lost without you to set us straight.
Thanks mate!
ps such a splendiferous crystal palace you have there, nice slingshot too!
FTFY
Or "All the Devils are Here" for an excellent example of a whole bunch of people depending solely on computer models.
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Bump for shenanigans
http://www.huffingtonpost.com/2011/05/23/gretchen-morgenson-reckless-endangerment_n_864841.html
As disgusting as I find all of this, and as morally/ethically questionable as it is, I still have yet to read anything that convinces me an actual, technical crime occurred. Large scale avarice and hubris for sure, but neither are crimes. Maybe amongst individuals, either those lying on loan documents or lenders doctoring paper work, but large scale systemic crime? Im not sure. To me the whole economic crisis is simply a reflection on how self serving and morally bankrupt society has become as a whole. Before 2007 these same bankers were role models, held up as heroic examples of American® capitalism. How anyone can read this stuff and still advocate for less regulation and control boggles my mind.
http://www.huffingtonpost.com/2011/05/23/gretchen-morgenson-reckless-endangerment_n_864841.html
As disgusting as I find all of this, and as morally/ethically questionable as it is, I still have yet to read anything that convinces me an actual, technical crime occurred. Large scale avarice and hubris for sure, but neither are crimes. Maybe amongst individuals, either those lying on loan documents or lenders doctoring paper work, but large scale systemic crime? Im not sure. To me the whole economic crisis is simply a reflection on how self serving and morally bankrupt society has become as a whole. Before 2007 these same bankers were role models, held up as heroic examples of American® capitalism. How anyone can read this stuff and still advocate for less regulation and control boggles my mind.
I don't know a lot of about investing, but I know plenty about gambling, and not surprising, many traders are big gamblers.
You hear stories about massive betting during the Superbowl, like the yardage on the first return, injuries, any bet that someone is willing to take action on.
So with that in mind, do I think that mentality can carry over into investing?
Investors might use computers and perform research, but ultimately they are trying to predict profit & loss, no different than an oddsmaker figuring a game's betting line. And they are competing against each other as well, one trader sells, the other buys.
There are exceptions, of course, like Warren Buffett, but I believe when there is a lot of movement in the market, it is no different than a craps game.
Traders /= Investors. Traders facilitate, very few take on their own positions. Portfolio Managers take on positions.
You need to look at the investment horizon to determine if a person is a flipper (what most call traders) or an investor. WB invests for the longterm, multiple years out based on fundamental value of a business. Read Security Analysis and The Intelligent Investor. Those books are about fundamental and value investing.