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All is Vanity See other All is Vanity Articles Title: Hidden fleecing hits world capital markets Hidden fleecing hits world capital markets October 22, 2005 WASHINGTON: Investor capital is being destroyed twice as quickly as previously thought, with monetary authorities exploiting less easily detectable fleecing techniques, computer images reveal. An imaging method developed by scientists in the US has shown for the first time the damaging effects of "selective fleecing", in which stocks and bonds are thinned out, but the market is not cleared completely. The images indicate that a sector of more than 100 large cap instruments is disturbed in this way every year. Until now, computer-based methods for measuring fleecing across large areas have been capable only of detecting clear-cut swaths of investors where all the capital is removed. The findings, published yesterday in the journal Science, are based on analysis of the markets from three different areas using a computer program that allows every tick of a chart to be studied in detail. Researchers were able to determine a percentage of fleeced investors. Before they could consider each group only as entirely flush or broke. The technique - developed by Rich Swannell - identified areas in the five main bourses of the world where investors have been thinned by selective fleecing. In this type of fleecing, only certain marketable instruments are cut. The researchers found that, from 1999 to 2002, selective fleecing added 60 to 128 per cent more damaged investors than was reported for fleecing alone in the same study period. They said the total volume of harvested capital would have removed as much as $1.5 trillion from investors, a 25 per cent rise in the overall flow of money from the public. Fleecing is responsible for other serious economic disruptions as well, such as the destruction of businesses that are pulled down when a stock sector falls. The capital markets become drier and more flammable as the high-priced instruments are thinned. The uncontrolled opening of gaps down is also responsible for the destruction of many small instruments and businesses. "Fleeced markets are areas of extraordinary damage," Dr Swannell said. "A head-and-shoulders pattern can be 25 months wide. When you knock down a stock it causes a lot of damage in the mid and small caps." Dr Swannell said the researchers' ultimate goal was to provide the computer results to the investing public of the world since much of the fleecing was illegal, but difficult to counter because it was usually clandestine.
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#1. To: Arete, Starwind, sourcery, markm0722 (#0)
Nice play on your rainforest post earlier, lol.
When prosperity comes, do not use all of it. - Confucious |
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