Critique and Analysis
The main objective of this book is to illustrate that corruption in Wall Street is still strong. Most of the aspects of corruption in the present set-up reflect elements of fraud on the public sector. In addition to rendering Wall Street unfair and inefficient capital allocation system, corruption transformed Wall Street into a wealth transfer system. This involves the transfers of wealth from masses of little investors and transferring the elements to the corporate and Wall Street insiders. This occurs in the presence of the cop on the beat, Securities and Exchange Commission looking the other side of the problem. The adoption and implementation of the Wall Street rules acts in the protection of the institution from clients and not the other side of the coin. Individuals managing institutions such as New York Stock Exchange and the Securities and Exchange Commission have developed the art of dissatisfaction, but doing little to avert the situation. The author of the book highlights on the less influence of fines and penalties from the Securities and Exchange Commission with reference to the corporate criminals in comparison to the parking ticket on the outside of the buildings of the commission to clients or the entire society. The author identifies the evil acts of the agreement signed between investors and their brokers. This agreement acts towards limitation of access of investors to the courts. This attempts shuttle the investors to the arbitration system dominated by the Wall Street Veterans.
I believe the aim of the Wall Street is to manipulate the essence of paper claims to real wealth. This approach would extra increased amount of profit levels without production of goods and services. The methodology involves the use of creative accounting, securitization, and leveraged buyouts focusing on the private equity firms. This has contributed towards the development of nuclear blast within the spectrum of the financial finagling. The misdeeds of the blackguard contingent and the white shoe set come under the microscopic scrutiny of the author from the cook infested micro-caps and offshore boiler room pump to performance inflating mutual funds. Ordinary investors have the ability to fight back and emerge on top. This is through recognizing the warning signs, filter media chatter, and the looming meltdowns in the corporate sector. I do not believe in the end of such activities. The main reason why I support the argument of the author is that having hundred thousand dollars is not the same as having hundred thousand dollars in the Wall Street. This is because one would be viewed as a two or three thousand-year client in relation to your broker or advisor. To an individual this amount is a reflection of hard work while to the advisor, this represent a tool for generation of more money. The ability to invest illustrates that one do not need the advisors or brokers anymore. The brokers benefit enormously from uneducated clients in relation to investing.
Conclusion
The main point from this book is that the regulations and punishment of the criminals in the Wall Street is executed through fraud. This supplements the efforts of the individuals aiming to generate much money through your investing efforts. Securities and Exchange Commission applies little effort towards minimization of the problem. This is illustrated through the request by the institution to the criminals to stop their actions. I also became disillusioned of the professionalism at the Wall Streets and employees or experts acting within the organization. This is a revelation in relation to organized corruption and shady practices that Wall Street firms adopt and implement as part of the normal business activities under the watch of the Securities and Exchange Commission.
