Robo-Stock Market Blew a Fuse
Forex Market News about The robo-stock market blew a fuse Thursday. From CNN reports that Now is Washington’s chance to rewire the joint for good. The exact causes of Thursday’s stock market short-circuit remain unclear, but the lesson is unmistakable. The regulators and the major exchanges have drifted from their original duty: to run a market that gives small companies a way to raise capital and mom-and-pop stock buyers a way to invest for the future on fair terms.The IPO market’s decline is “hurting small business by cutting off a source of capital.that in turn would drive reinvestment and entrepreneurship in the United States,” the report by David Weild and Edward Kim concludes. The report presents the collapse of IPO activity as “the perfect storm of unintended consequences from the cumulative effects of uncoordinated regulatory changes and inevitable technology advances.”This runs directly counter to the notion oft bandied about by the likes of Goldman Sachs (GS) that their activities – which in recent years have increasingly focused on trading – help the economy. Goldman came under fire at its annual meeting Friday for paying out huge bonuses without contributing much to struggling local economies.
