Hermain Cain – basically it’s your fault that you’re not clever enough to corrupt the government and fraudulently trade on Wall St

By Dark Politricks

When I heard Herman Cain say the other day about the Occupy Wall St protesters:

”Dont blame Wall Street. Dont blame the big banks. If you dont have a job and youre not rich, blame yourself.”

I had to laugh for what he really meant was this:

“If you don’t have a job, don’t blame Wall St for being cleverer than you.”

Don’t blame Wall Street for buying off politicians, spending millions ensuring that Congressmen, Senators and Presidents look the other way by offering them cushy jobs when they leave office or paying for their elections”

Don’t blame Wall Street for building super computers that hook into the mainframes of the stock exchange so that they can front run trades and steal billions from honest investors through High Frequency Trading.”

“If your too stupid to build your own high frequency trading super computer, buy off the government and then have the balls to hold a gun to their head when you realise you have bankrupted the country. Too stupid to demand the tax payers bail you out when you destroy the world economy through your own greed then it’s your own fault stupid!”

God, what a simple mistake to make. And I stupidly thought America was a free capitalist society in which hard work makes winners and theft, bribery, corruption and fraud led to prison sentences.

If you don’t know what High Frequency Trading and front running is all about then here is a description from maxkeiser.com

“High-frequency traders often confound other investors by issuing and then canceling orders almost simultaneously. Loopholes in market rules give high-speed investors an early glance at how others are trading. And their computers can essentially bully slower investors into giving up profits — and then disappear before anyone even knows they were there.”

“High-frequency traders also benefit from competition among the various exchanges, which pay small fees that are often collected by the biggest and most active traders — typically a quarter of a cent per share to whoever arrives first. Those small payments, spread over millions of shares, help high-speed investors profit simply by trading enormous numbers of shares, even if they buy or sell at a modest loss.”

Over the last decade there has been a huge increase in the amount of high frequency trading that the big banks (those people clever enough to build super computers) engage in.

There has also been a huge increase in derivatives, so much so that the volume of financial transactions has increased to more than 70 times the size of the world economy.

Many serious commentators and economists from all political angles from Austrians to Keynesians and Conservatives to Liberals believe that this volume is dangerously large and de-stabilising, and that many of these transactions are, in the words of Lord Turner, chair of the Financial Services Authority, ‘socially useless’ e.g they literally have no benefit to you and me or society in general.

The only people who benefit from these high frequency trading algorithms and front running are the big banks like Morgan Stanley and Goldman Sachs.

Instead of trying to make the best investments for their clients they are basically using their customers investments as indicators of future market movement and through their super computers tied into the stock market they can literally use this inside information to their own benefit by making their own trades before the customers they are supposed to be helping.

Many of the most speculative, risky and socially useless transactions are based on very small profit margins, meaning that even at a very low rate such as 0.05%, a Financial Transactions Tax would shrink the size of the market by reducing the profitability of the most risky transactions. Many economists support a Financial Transactions Tax for this reason alone.

And here is Max Keiser again explaining why Wall Street is basically based upon a zombie computer system in which automated trading BOTS trade against each other making huge profits for the big banks whilst you silly little people who weren’t clever enough to build such super computers lose out constantly.

Due to these automated trading BOTS the average length of any trade is currently fractions of a seconds at the very most.

This means that recent calls by groups like Occupy Wall Street to implement a “Robin Hood Tax” make lots of sense if these taxes were targeted at those parts of the financial system that employ high frequency trading methods.

Long term investors, Pension funds and people who buy stocks as a long term investment could be excluded from this Robin Hood Tax but stocks that were held for only a few seconds at a time as these high frequency trades often are would be taxed and could raise a large amount of revenue to pay back the people who have so far bailed these banks as well as continuing to pay for the banksters huge salaries and fat bonuses.

As the Robin Hood Tax site says on the question of why tax the financial industry?

  • Because it’s responsible for a big part of the mess we’re in.
  • Because it has an obligation to all of us to help clear it up.
  • Because it is the most profitable industry on earth, 26 times more profitable than the average business.
  • Because it is under taxed – so it can afford to do so. A tiny tax on the financial sector could generate £20 billion annually in the UK alone. That’s enough to protect schools and hospitals. Enough to stop massive cuts across the public sector. Enough to transform lives around the world – and to deal with the new climate challenges our world is facing.
  • Because so far, the cost of the financial crisis to the UK economy, as calculated by the International Monetary Fund, is that UK government debt will be 40% higher. That 40% equates to £737 million pounds, or £28,000 pounds for every taxpayer in the country. Having to pay back that debt means cuts in vital services on which millions of people around the country rely.
  • Because according to the Bank of England, the fact that the government will not let the big banks go bust means that they effectively get a subsidy of £100 billion pounds from the UK tax payer each year. But the banks have already started to report record profits and pay themselves enormous bonuses once again. The 2010 bonus pot for the UK was £6 billion pounds, enough to pay the salaries of 340,000 nurses in the UK, or provide free healthcare for 250 million people in developing countries.
  • Because the IMF and many other financial commentators believe that the financial sector is under taxed, and has grown to become dangerously large and destabilising for the global economy, as we saw when the crisis hit in 2008. FSA Chairman Lord Turner has described a portion of the financial sector as ‘socially useless’.
  • Because it’s time for the financial sector to make a greater contribution to the society it serves.

When people like Herman Cain complain about the people camped outside Wall St calling these “too big to fail” banks the “wealth creators” of the country they are right.

The only difference is that they create wealth for themselves and not you or me. I hope you take that into consideration if you are thinking of voting for someone like him in the next election.


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