If you’re wondering what happened to your retirement security, then you really need to read the NY Times excerpt from “The Wolf Hunters of Wall Street.”
The same system that once gave us subprime-mortgage collateralized debt obligations no investor could possibly truly understand now gave us stock-market trades involving fractions of a penny that occurred at unsafe speeds using order types that no investor could possibly truly understand…
“It was so insidious because you couldn’t see it,” Katsuyama says. “It happens on such a granular level that even if you tried to line it up and figure it out, you wouldn’t be able to do it. People are getting screwed because they can’t imagine a microsecond.”
…Even giant investors simply had to take it on faith that Goldman Sachs or Merrill Lynch acted in their interests, despite the obvious financial incentives not to do so.
“Giant investors” would include – yes, that’s right – public pension trust funds.
Like the NH Retirement System Trust Fund… which was 100% funded, as recently as 1999.
Or Detroit’s public pension systems, which were fully funded as recently as 2008 – but are now being used as the “reason” that the City “has” to go through bankruptcy.
Wonder where your retirement has gone?
Read about Wall Street’s “dark pools”… then get really, really mad.