Jim Cramer echoed your last comment
Reader comment on: Insider Trading Victims
Submitted by Lyle (United States), May 18, 2011 00:43
During the days of Daniel Drew people thought the market was a con game, and that time because the brokers wanted to stay in business they cleaned up the act by making companies announce new issues in advance (Drew watered the stock of the Erie). The 1930s convinced people that the market was rigged, and Monday Cramer also said that he suspect a lot of folks feel the market is rigged against the little guy. Cramer noted the low volume and that a lot of retail investors are just saying no to the equity market. Wall street has to be careful or they could turn a generation off on stocks like the generation of the 1930s. If enough people distrust the markets they will lapse into casino mode. (All be it that long term stocks yield about 8% real return since 1871, but today folks are far too short term, long term a lot of the noise even produced by insider trading gets damped out, just like the high frequency stuff).
Note: Comments are moderated by the editor and are subject to editing.
The Future of Capitalism replies:
Other reader comments on this item
Comment on this item