Resurrection of GOP and Reaganomics, Wall Street will skim even more from Main St

Stocks a sucker bet in a rigged game; meltdown ahead.
Paul B. Farrell

Dec. 7, 2010, 9:23 a.m. EST
10 reasons to shun stocks till banks crash

SAN LUIS OBISPO, Calif. (MarketWatch) — Do not buy stocks. Not for retirement. Not in the coming decade. Don’t. Huge risks.

Wall Street is a loser. Stocks are Wall Street’s ultimate sucker bet. And it’ll sucker you again. You’ll lose, worse than in the last decade. Wake up before Wall Street banks trigger the next meltdown, igniting mass bankruptcy.

Here are 10 more reasons not to bet at Wall Street’s casino … wait till after they implode:
1. American stocks are a high-risk sucker bet

That’s the view of Peter Morici, the former chief economist at the International Trade Commission: that U.S. stocks are a sucker bet. Is Main Street waking up to Wall Street’s con? Maybe. “With corporate profits breaking records, Wall Street anxiously anticipates the return of the individual investors to the stock market. It may be a long wait, because the little guy may have concluded investing in stocks is a sucker bet.”

Feds target investment fraud

Federal officials, including Attorney General Eric Holder, announce the results to date of "Operation Broken Trust," a three-and-a-half month investigation targeting investment fraud.

America’s divided into two stock markets: one for Wall Street’s rich insiders, another for Main Street’s suckers: “Investors, as opposed to traders, buy stocks in companies whose profits they expect to rise. The conventional wisdom says stock prices will follow profits up, but over the last two business cycles, that simply has not happened.”

From 1998 to 2010, profits rose 203%. But the S&P 500 was up just 7%. And still, naive investors buy into Wall Street’s sucker bet.

Who’s pocketing the huge profits? Rich insiders. “Because most of the increased value created by higher profits,” says Morici, “has been captured by hedge funds, electronic traders, private equity funds, and aggressive M&A shops, free standing and at major investment banks, which have multiplied over the last two decades.”

Warning: With the resurrection of the GOP and Reaganomics, Wall Street will skim more from Main Street, get even richer. And yes, you’ll lose more.

read reasons 2 to 10 here:
http://www.marketwatch.com/story/10-reasons-to-shun-stocks-till-banks-crash-2010-12-07

 

a complete asinine comment in an otherwise correct article. if the author had focused on the reasons why stocks are rigged and less on his political views, it might have been a decent read.

he (and you) act as though the democrats didnt get any money from wall street (you know, like Obama getting the most from Goldman?) two elections ago.

wake up. both parties need to be curtailed when it comes to wall street. it's not partisan.