Fwd: Warning signs of the coming financial armageddon, #569

Doug Henwood dhenwood at panix.com
Tue Feb 23 08:04:51 PST 1999

Henry C.K. Liu wrote:

>I wouldn't worry about this trend causing a financial armageddon, it will only
>shift the current surplus value from the pockets of an undeserving few to the
>pockets of the more deserving many.

No, I don't think daytrading on the web will bring about armageddon. I just see it as another symptom of a collective mania with few historical precedents. Certainly the late 1920s, maybe the late 1960s - but what else?

Regardless of the social/economic effects, people who day trade on the web will be lucky to break even. There's a lot of nonsense in financial theory, but the near-impossibility of beating the market and the counterproductive nature of excessive trading aren't part of the nonsense.


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