Mark Cuban Rants as the Big Banks Throw the Perfect Game

Whether you love him or hate him, you would have to agree that Mark Cuban is force within himself. The product of a working class family, Cuban once sold garbage bags at the age of 12 to pay for a new pair of expensive shoes. From there the entrepreneur was born, eventually earning himself a place in the Forbes 400 with a net worth of $2.4 billion. So when Cuban has something brutally honest and obvious to say about the markets it is worthwhile to listen in. Prompted by the “Flash Crash”, here’s Cuban take on the whole matter. From blog maverick entitled: What business is Wall Street In? “ The only people who know what business Wall Street is in are the traders. They know what business Wall Street is in better than everyone else. To traders, whether day traders or high frequency or somewhere in between, Wall Street has nothing to do with creating capital for businesses, its original goal. Wall Street is a platform. It’s a platform to be exploited by every technological and intellectual means possible. The best analogy for traders? They are hackers. Just as hackers search for and exploit operating system and application shortcomings, traders do the same thing. A hacker wants to jump in front of your shopping cart and grab your credit card and then sell it. A high frequency trader wants to jump in front of your trade and then sell that stock to you. A hacker will tell you that they are serving a purpose by identifying the weak links in your system. A trader will tell you they deserve the pennies they are making on the trade because they provide liquidity to the market. I recognize that one is illegal, the other is not. That isn’t the important issue. The important issue is recognizing that Wall Street is no longer what it was designed to be. Wall Street was designed to be a market to which companies provide securities (stocks/bonds), from which they received capital that would help them start/grow/sell businesses. Investors made their money by recognizing value where others did not, or by …

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Mark Cuban Rants as the Big Banks Throw the Perfect Game

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