There are many similarities between financial markets today and the late 1920’s. Rampant insider trading is one. An unholy alliance between the financial sector and government is another. Key market moving reports being leaked to an elite few ahead of the masses is another. Record bullishness. Record margin abuse. Unreasonable faith in the powers of big men and women in high places to keep stock prices at permanent new plateaus regardless of over-valuations and a weak economy.
Today we have another one: as in the late 1920’s, some “journalists” are being paid financial incentives when they write market moving stories. This way corporate sponsors and financial firm algo traders can capitalize on the timely release of strategic news to play a naive public. See: Bloomberg pays reporters more if their stories move markets.
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