Why people aren't in the stock market

Michael Holland on Bloomberg TV on March 13, 2012, noted that "people aren't in the market--it's computer and high frequency trading." If one wonders why, Gregg Smith gave a pretty good reason the very next day in the New York Times:

Why I Am Leaving Goldman Sachs - NYTimes.com: "Integrity? It is eroding. I don’t know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Every day, in fact. It astounds me how little senior management gets a basic truth: If clients don’t trust you they will eventually stop doing business with you. It doesn’t matter how smart you are."

And then there is this--

How Wall Street exploits individual investors - CBS News: "In December, I demonstrated just how bad a deal Goldman Sach's (GS) stock-linked CD was for investors. In fact, all similar structured products, such as principal protection notes, accumulators, reverse convertibles, super track notes, and equity indexed annuities, are just swell for the seller, but bad for the buyer. As evidence of how inappropriate these products are for individual investors, you'll never find a Registered Investment Advisor -- someone who provides a fiduciary standard of care and doesn't accept commissions -- that recommends them."

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