Skip to main content

View Diary: I.R.S.: U.S. Income Inequality Has Reached Record Level (w/Update) (186 comments)

Comment Preferences

  •  More details (2+ / 0-)
    Recommended by:
    cpresley, Cassiodorus
    You never addressed my point as to how exactly most companies with solid balance sheets weather major changes in their stock prices without major impacts.
    Quite simply: companies borrow against their equity. Without equity their credit dries up. Without credit a lot of companies can't function.
      I hope that helps.
     So? Even if you're right, adding liquidity some of the time but not all of the time is still a benefit to the market.
     That's obviously not true. Excess liquidity in an upmarket leads to bubbles.
      Plus HFT adds nothing to the underlying fundamentals and merely skims profits off the top of every trade.
     A market with solid fundamentals cannot crash regardless of the activities of speculative traders.
     The days of this being a healthy market are long over. The current markets are manipulated at every level.

    None are so hopelessly enslaved, as those who falsely believe they are free. The truth has been kept from the depth of their minds by masters who rule them with lies. -Johann von Goethe

    by gjohnsit on Wed Sep 11, 2013 at 09:49:11 AM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site