These days banks are rolling out financial literacy initiatives, with the presumed aim of getting the consumers to start investing again after a few years of crisis and volatility.
But as Paul B. Farrell writes today in MarketWatch, “financial literacy” can’t get around the fact that Wall Street is still a casino with odds stacked heavily toward the house.
Here are a few reasons why:
- Commission brokerage plans work to Wall Street’s advantage
- Cleverly crafted marketing and sales systems mislead naïve investors
- favourable SEC regulations are won by lobbyists and political donations
- Portfolio alternatives, practices and advice are deceptive, rigged to skim off fees
- Systemic data manipulation with stocks, bonds, mutual fund, derivatives
- Psychological profiles of investors are used against clients
- High-frequency trading algorithms run circles around individual investors, making thousands of trades in milliseconds
Farrell calls Wall Street a “saboteur,” a “P.T. Barnum ringleader,” and a hindrance for retirement-minded savers with their eyes on the future—fighting words.
What do you think, do you agree with Farrell?
You don’t have to gamble your savings in the Wall Street casino. See 15 smart things you can do with $100 instead >
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