Market

A view from the trenches: A decade or so ago I worked for a firm that supplied managed accounts to clients. Our only responsibility was to the trading account. The account demanded we verify the financial suitability of the people putting up the money; we demanded as much as a million liquid net worth (always an area for lying in order to get commissions), a level of sophistication regarding speculative investments (try telling some snotty multi-millionaire that he's not suitable--he will sue), and last but not least making sure his check cleared before we place money in the trading account. To make things clear: I don't know of a single top trader who will accept client money directly, this is supposedly so they cannot be sued. This was and is the system. Follow the trades? Impossible since ten million shares may be bought or sold in a market that is in constant flux. We are only required to show the average (or mean) price received or paid. A guy like Madoff (and there are plenty that are even bigger) always has the shield of volume which serves to hide much of what he's doing.

Did WE ever go over the trades? Hell no, and if we ever did the trader might cut us off. It's the system here. I suggest that almost all large accounts furnish false data because there is no way to determine fills. Keep in mind that a single buy-sell transaction might include index futures on various exchanges, bonds of various countries on all exchanges, currency hedges, not to mention options and warrants. I don't know the solution here, I just point out that traders just trade and money raisers just raise money. None of us has a guardian angel to furnish each investor so he won't get screwed.

Overall: I think we have a system that is nearly totally corrupt; our elected officials, our various watchdogs, our churches, the press (media) and our spouses. We need God, or at least a hot Goddess, or we are doomed. It is we who have corrupted the system, not the reverse.