Lambs Led To Slaughter

Several people I know of are resorting to Day Trading to make ends meet.

From dawn to dusk, their Lap Tops monitor all kinds of activity going on in the equities market. When they detect a market trend, they hit a key on their computer to either (a) Buy a stock, or (b) Unload their shares.

All kinds of software and other "market tools" have been designed to give them an edge, allowing them the luxury of playing the stock market from the quiet and the comfort of their own homes. They even have their own Gurus.

I have never, ever, been one of those "snoops" who inquire, out of catty curiosity, whether or not any of them make real money by engaging themselves in day trading: It's their money and it's their business and I only wish them much success.

Yet, every week or so, someone asks me why I don't get involved in "investing."

Adhering to my "anti-snooping rule," I deflect the inquiry -- converting it into a subsequent conversation about the success (or lack thereof) of the Boston Red Sox, or some such other matter of trivial consequence.

What I really feel like telling them is this: I would rather be staked out, stark-naked, on a Fire Ant Hill with honey smeared on my you-know-whats, than spend most of my waking hours staring at Wall Street trend lines streaming acronyms, in red and green codes, across my computer screen.

The other day, I ran into the "someone" I mentioned earlier. He appeared to be pretty glum -- so glum, in fact, that it was actually he who wanted to talk about baseball. I had every reason to believe that he was being beaten in the Stock Market like a Himalayan Mountain Gong.

Then, very early the following morning and by sheer coincidence, I happened to tune in to a BBC broadcast -- one which shed much light on any Day Trader's anxiety. According to the BBC account, the equities markets are being manipulated by the Usual Suspects: investment bankers, large brokerage houses, hedge fund managers, and the speculators.

The BBC made it all appear to be very clear: the Commodities and Futures Markets are becoming very, very attractive to these High Rollers.

QED: by shifting their investments into commodities / futures such as corn, wheat, oil, cotton, truck crops, and basic raw materials such as copper, the High Rollers can double their money in months!

Ergo: why should they keep their investments tied up on equities, especially when yields derived from the Stock Market are at an all-time low?

Problem is, the High Rollers have been manipulating the commodities / futures markets for several years now -- which explains why the costs for commodities such as grain and fossil fuel (to cite just a couple of examples) have more than doubled since 2008.

Of course, wheat farmers in Kansas are as Happy as Clams. But what about the local guy who owns the Bagel / Doughnut Shop? While our Kansas farmer can acquire a whole new fleet of combines (and maybe have enough left over to buy a condo in Aruba for straight cash) our Bagel Guy is compelled to almost double his prices -- or close his shop.

Then there is this matter: did you ever wonder about the prime reason why the "Arab Street" is raging in places such as Egypt, Tunisia, Libya, and Bahrain? The good folk there are paying through the proverbial nose for one of the staples in their diet: wheat.

By the way, the wheat they rely upon is grown in Kansas...

It's simple to point a finger at all of this mess and blame the astronomical rise in commodities on "market forces" such as The Law of Supply & Demand.

According to the BBC, however, there are more sinister and complex forces at-play. The High Rollers have ginned the economics on both sides of the Supply / Demand equation.

By diverting Billions of Dollars into the Commodities / Futures Markets (think grain futures), they can gain control of how much grain is grown -- and then control the price of the grain once it's harvested and delivered to the market.

In short, the High Roller gets two bites off of the commodities/ futures apple while my Day Trading pal gets blood-shot eyes while he keeps tabs on the Big Board for a hint of opportunity.

I have nothing more to say about this other than: I get the feeling that the High Rollers are acting immorally -- if not illegally.

Perhaps Barney Frank and Bernie Sanders can come up with some deterrents...

I, for one, will drive over to the Farmers' Market and get a couple of Big Boys.

At least I'll be supporting a local, sustainable economy -- one which I fully understand.

Well, sort of ...