I realize the markets are way off today, but as I type this the
Russell 1000 Value index is only down about 4.5%, yet IWD (the iShares
ETF that tracks it) is being quoted as down over 33%. Bad data feed,
or is it really diverging that much from its NAV?
Rich Carreiro firstname.lastname@example.org
If those were real prices, as opposed to some sort of reporting problem,
then likely so. Some time back, I had placed limit sell orders on some
Vanguard ETFs. In the morning, they sold at above the limit price, which I
thought was just dandy. Unfortunately, word came from Wells Fargo that
they'd been ordered to roll back all those transactions to do to some sort
of error at the exchanges.
I know this is an unpopular stance amongst the financially conversant,
but ... maybe there's too much money concentrated in too few hands
with too much emphasis on 'making money' instead of producing economic
value. If there's validity to that, then perhaps we have our own
'Greece,' not realizing that all this is "our" fault. By putting money
into funds, hedge funds, asset managers, private equity, proprietary
trading, etc., all with demands that these 'make money' we concentrate
money into a few hands. My opinion only is that we may have created a
culture that pretends economic efficiency, but is in fact ignoring the
human factor in the doctoral equations (always a fatal error).
I was out prepping my lawn for fresh sod this afternoon, and missed
the fun, but my own modest portfolio is based on production of very
sound and ethical companies, so when I heard the 'down 900 points,' I
just got a little ticked that I missed the 'action.' I'm seriously
irritated long-term that IPOs and municipal bond markets have all but
disappeared for the individual investor, and that individual investors
get treated like those who still pay cash (credit card) for medical
services. But I'm just spitting into the wind.
Mark Fisher of MBF apparently is a high-tech trader in a state of the
art firm. He said (words to the effect): if we don't slow this down,
we're going to have a global financial disaster, and it'll be all our
own fault. Humans just can't keep up, he said. His is a different
perspective from my own, but there are similarities.
The basis of any society, regardless of function and technology, is
the individual responsibility of each member. By displacing
responsibility, we're inviting destruction. "I get paid to do this"
and "everyone is doing it" are just a couple of excuses amongst
Thanks, interesting article, and given the roll-back of Glass-Steagal,
it carries some weight. It looks like an interesting site, too. I
notice the article was written May 4th.
My take is that "bankers" (concentration of money) is challenging
governments, or perhaps just ignoring them. The article you directed
to echoes a 1980's book concerning Latin American balance of power
between land owners, church, and military.
Btw, I finally came up with an answer to a question posed here, "What
is it that 'bankers' did wrong, or what was criminal about their
actions?" My answer is to ask the same questions about oil spills. Oil
companies at least have a product available to everyone, and they get
billed for their spills. The legitimacy question the article brought
up applies when taxpayers have to pick up the bill for "bankers" nasty
The scope of this 'problem' with the 'financial system' definitely
merits a quick and terminal solution.
That was one of John's Mauldin's newsletters. If you liked it, you might want
to sign up for them at:
John Mauldin is in the business of assessing and recommending hedge funds to
(mostly) accredited investors. But he sends out two newsletters a week. One
Friday night with his analysis and opinions and one on Monday with someone
else's. I've read every word of every one since 2002.
I like them for being detailed and insightful. His arguments are always well
supported by outside sources. I know I'm gushing, but I think they're very
good. Usually, he includes a brief ad describing the services he offers, but it
is brief and polite. I've never been spammed and I have no connection with him
other than being a long time reader.
This week's letter is a scary piece on the emerging crisis for sovereign debt.
Thanks for info, I may try it. Most of my reading is 10k's and texts
such as econ, accounting, with an occasional 'current' book.
Understanding the background is much easier than trying to evaluate