Consequences of financial markets greed

There are two things that can be guaranteed in life - and it isn't death and taxes. It's human greed and human anger when being ripped off and lied to, and that is exactly what is happening in financial markets at the moment. I'll focus on Wall Street at the moment because the majority of blogs I read about current market events relates to the US.

Okay so this current financial situation is something new...result of cheap (and unrealistic) credit, Wall Street knowingly providing credit to uncreditworthy families, the parcelling of junk mortgages into AAA securities and onselling to Mums and Dads - all for the sake of providing fee income to the big investment banks (and therefore the large number of overpaid executives). Who can blame the average investor for being angry and feeling hard done by.

Financial markets were never meant for this kind of activity - it was for the facilitation of trade, fair trade where the playing field was level. Now the largest players hold all the cards and you cannot gamble against the house. Except that we don't know which way the 'house' wants the market to go.

However the consequence of this is a huge breach of trust on behalf of Wall Street and one which the average investor will not forget soon. There will now be a strong case of mistrust, while in the past did exist, was not a problem whilst the game was being played relatively fairly and with a degree of visibility. Now it appears that the sole purpose of Wall Street is to reward itself with no regard for why it exists in the first place.

Mark my words...this is the start of the end for the financial markets industry, an industry that in reality creates nothing, adds nothing and is really quite useless considering the large number of people working within it. This latest act of greed has caused negativity toward financial markets to a level not seen before. This is because the problems are not fundamental but caused by a few taking advantage of many for the sake of personal advancement.