Entries Tagged 'Investing' ↓

Trump’s Scheme to Rip-Off the World

This weekend Donald Trump settled multiple cases related to his Trump University for alleged scams that bilked 5,000 students out of $40 million of their hard-earned savings with the promise that they’d be taught how to make money in business.

Judge Gonzalo Curiel, the judge whom Trump alleged was biased because he is Mexican-American, kindly gave Donald an “out” by suggesting that President-elect Trump would be too busy to fight his lawsuits. And that was the reason Trump gave when he paid $25 million to settle.

But was it the real reason? Hardly! Donald Trump settled his previous scams because he has way bigger fish to fry.

The tell

On Friday, MSNBC news featured Hollywood Reporter, Michael Wolff on the Chris Hayes’ show. Wolff was first to interview Steve Bannon, Trump senior counselor.

In this interview Steve Bannon gave us a hint of what he’s really up to.

The media and many Americans have been consumed with worry about the racism, sexism, homophobia, and other prejudice that Trump voiced during his campaign and that Bannon’s Breitbart website fuels.

Asked about this, Bannon hastened to assure Wolff those things were not “what he was about.”

Next, Bannon claimed his chief goal is to create new jobs for Americans.

I can believe Bannon’s first assertion, but not his second.

Here’s what led me to discount Bannon’s second statement. Continue reading →

Greece – Who Really Should Pay?

Reprinted from Huffington Post

This time around, it’s Greeks who should beware of foreigners bearing gifts…

Ever since the financial crisis of 2008 hit Greece, I’ve wondered who really should pay.

Today, trying to find a reason for my unease with what’s happening to the Greek people, I took a look at the definitions of two forms of risk that investors can incur when buying foreign debt: Systemic Risk and Sovereign Risk.

Systemic Risk

Systemic risk is a term that came up quite frequently during the global Financial Crisis of 2008. I could never quite figure out what the term meant just by reading about systemic risk as part of a larger context in news stories.

Recently, however, I saw that familiar term used in relation to medical treatments. What I read was that chemotherapy imposes a systemic risk on the body while surgery and radiation treatments for cancer are more targeted risks to the patient.

In regard to investing, Wikipedia says, “In finance, systemic risk is the risk of collapse of an entire financial system or entire market”

We all know, or think we know, what an entire body is, but what is meant by “an entire market”? Continue reading →

Runaway High Speed Trading – Protect Yourself!

On September 28th, the New York Times’ Business Page published “Beyond Wall St., Curbs on High-Speed Trades Proceed“. It shows how Australia, Canada, the European Union, France, Germany, and Hong Kong are all leading the United States in cracking down on high speed trading.

High speed trading employs computers located as close to the stock exchange computers as possible. The fastest computers use private high-speed cable rather than the Internet. Then high-speed traders employ programmers to build special algorithms (computer code) that can execute each trade in one trillionth of a second.

These “algos” are invisible to others. Algos prevent trades made by institutional investors and retail investors from taking place until the high speed traders need to sell their shares of stock that are about to fall in price.

Are “algo wars” among high speed traders causing stock exchanges and other financial markets to crash? Are algo wars increasing volatility in the market? In America, thanks to the opaqueness of the Security and Exchange Commission (SEC), it’s anyone’s guess. But many active traders and financial regulators in other countries believe high-speed trading is the cause of flash crashes and excessive volatility. Continue reading →