Everybody should check this out
This is more than anyone ever wanted to know about stock trades, but everybody has to know it whether they want to or not.
(What follows is largely a reposting of a comment I left on russiangambit's CAPS blog)
One problem that I have with his conclusions, though, is that we already have adequate regulations that are not being enforced and they serve as a shield for corruption, not a cure. So we need... more regulation?
Also, the explanation of the need for the SEC was pretty thin. So Wall Street was fooling individual investors into momentum investing? That cried out for government regulation. Once again, regulation was added to make people feel better (ooh, I got burned just because I invested without understanding what I was doing: fix it!) and the result was that actual theft was allowed to spring up with government protection.
As Drs. Walter E. Williams and Thomas Sowell point out, it is government regulation of an industry that causes monopoly, in every recorded instance of monopoly in the history of commerce. Without government regulation, monopoly cannot exist, because it is the might of government that is required to short-circuit the supply and demand that would draw other companies to provide a service where profit margins are completely unjustifiable.The ICC and trucking, the congress and sugar tariffs, the SEC and naked shorting... when will you liberals learn?