Some real sunlight would help demystify and bring out opportunities to make them more responsible.

This is exactly what’s needed, and why the markets are going down these days.

They know sunlight’s coming and they’re stealing all they can now before the cops show up.

There is no reason (other than the hedge fundies) for markets to be going down these days; we’ve known we’re in a recession for months now, and billions of dollars have been put into stabilizing the system since the November lows when we were told “the financial sky is falling”.

Normal buying patterns would dictate that large mutual funds and pensions would be buying right now with both hands; after all, if you liked Proctor & Gamble at $70, you should love it at $50/share.

They aren’t buying because the hedge funds still rule the roost, and can still murder any stock just because they want to.

Until this changes, no significant buying interest will exist, and therefore many more down days lay ahead.

The new regulations on financial services companies can’t get here soon enough.

Thanks, Jane, for this report.

Bob in HI

When we say the stock market goes up or down, we have to understand that a majority of trades on any given day are made by a relatively small number of hedge funds, most of whose names few of us have ever heard of.”

Good idea. The open trading floors of the Stock, financial(derivatives?) and commodity markets give the illusion of transparency. They are anything but. Some real sunlight would help demystify and bring out opportunities to make them more responsible.

As if the market is some wise arbiter of sound policy hovering over the financial crisis

But…but… isn’t that one of the Republican Party’s core values?

Bob in HI

Stock markets are another illustration of the process at work. Traders are lillies of the field, they toil not neither do they spin, yet we consider them significant. As for regulation, when you regulate greed you take the fun out. That’s why taxing the wealthy is whispered. It’s crazy because no matter what the outcome, everyone dies. When we realize the game has no point, we may start thinking of alternatives. Right now it’s not likely.

Runnning the country based on the reaction of Wall Streeters is what got us into this fix.

The ”Free Market” ideal requires an UNFOUNDED belief in the ”Wisdom” of the markets. The markets are stupid though ~ see, like a computer! The markets only ”know” what they must believe to make money! And it’s just a form of gambling, unfortunately, with all kinds of statistics and words and charts. It’s money. It’s sales. Not much different from baseball, really. Unless you count the skill that is required to play baseball. My financial advisor is only a glorified salesperson: I have known this for a long time. Counting on them to watch my back is insane.

This is the big lie we are facing. Look at all the time the smart people here are spending understanding all of this. The market ”knows” far less than all of that. And it cares only about money. Not truth. Or compassion.

In my outsider analysis, I believe the bonuses are about nothing except keeping control of client lists. Has anyone seen that reported/suggested anywhere? If a financial agent leaves, many of their clients move with them or elsewhere. That’s the real capital in a financial firm: the accounts.

In related news, Merrill Lynch just lost $500 million more than BofA had projected. How much was ML’s bonus bill this quarter?