Ever wonder exactly how the high frequency algorithmic, Fed fueled Wall Street machine really works?
Joe Saluzzi, an expert on high frequency trading (HFT) algorithms and author of “Broken Markets”, joined Peak Prosperity in a new 50 minute video last week where they explained exactly how the system is rigged by talking about how the Fed is driving the market and how algorithmic trading has turned the markets into a casino where the institutions always win.
Banks Posting Record Numbers Despite The Recession
The video starts by discussing how banks posted record numbers this month despite the economy’s downturn.
“Over 50 million Americans have lost their jobs as a result of the economic carnage inflicted by the Covid-19 pandemic. And yet the big banks are not only unscathed, but positively swimming in profits,” the video describes.
“We live in a system run by the banks, for the benefit of the banks. We, the public, are simply grist for its mill. After all the US Federal Reserve, which wields immense global power and influence as the controller of the world’s reserve currency, is owned by its private member banks. Should we really be surprised how the banks always seem to come out on top?”
“This looks just like 2009. Wall Street paying itself huge bonuses while the rest of the world is stuck in recession,” the host says.
He also asks Saluzzi about how it is possible that banks like JP Morgan and Citadel will post “zero days” of trading losses in a quarter. Saluzzi responds: “Think of it as a casino. It basically is. There are guys that used to bet on sports and now they’ve moved on to the stock market. This is a different game. The house always wins.”
The Market Is Now Officially A Casino
“Joe’s key takeaway is to realize that the markets, and the financial institutions operating them, are casinos. They have engineered the system to slant the odds in their favor. If you invest your hard-earned capital without clearly understanding the risks in play, then you’re the sucker at the poker table,” the video explains.
Saluzzi talks about how institutions are extremely good risk managers and not only manage their downside risks in trades,