The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- Some readers may find it annoying seeing me continually characterizing the majority of market participants as "lemmings." I make no apologies. As the old one-liner goes, "If it walks like a duck and quacks like a duck..."
, lemmings do not commit "mass suicide." But then again neither do market participants. Rather, both groups are subject to the overwhelming compulsion to "migrate."
In the case of the lemmings, this compulsion is entirely biological in origin. They receive some cue or stimulus that they are close to exhausting the local food supply and then they scurry off
toward the proverbial greener pastures. It is on these frantic marches that most of the lemming population self-destructs.
In the case of market participants, they are entirely lacking in any instinctive guidance. Rather these lemmings charge off in a new direction based entirely on the latest pronouncements from "market experts" and media talking heads. In other words they are basing their decisions on blind faith. There can be no other way to characterize the actions of a herd which insists on allowing itself to be led around by a group of people who spend all of one day giving advice -- and then spend all the next day explaining why they are so surprised that their advice went so badly wrong.
and become a fan on
And so it is again today. We have market participants engaging in another "lemming charge" -- this time driving markets higher -- and all in response to the latest
put forth by the bankrupt bankers and the even more intellectually bankrupt politicians standing behind them.
Nothing has changed. The world is
2% better off than it was yesterday simply because the
has made its own
cheaper for other banks. While it could always be argued that
lemming-charge was merely intended to offset the (irrational) charge in the opposite direction which preceded it, this doesn't change the nature of the conduct we are witnessing.
There is only
group of people instantly ready to commit funds to a new idea, with nothing but the flimsiest of pretexts as a guide. That group is a group of gamblers. Note that it makes little difference conceptually if I substitute the word "gambler" for "lemming" in my analysis. Both groups (as an entire class) are inherently self-destructive.
In the case of the lemmings, their excuse is that they are mindless rodents. Presumably market participants (i.e., gamblers) lack that excuse. With such a large percentage of (for lack of a better term) the "investment community" needing to be protected from themselves, the obvious starting point is the complete abolition of all
While we listen to the media propagandists spout their inane "reasons" for the daily lemming-charges (first in one direction and then in the opposite one), we know that the real catalyst for these insane flip-flops in markets are the totally manipulative trading programs. These market abominations
with the same "iron grip" over them as the lemming biology which causes those rodents to go on their death-marches.
Markets were intended/justified as places of investment and commerce and not as
for the most psychopathic group of gamblers in the history of humanity. What happened today when media drones gave the "all clear" signal for market-lemmings?
They placed a lot of new bets. Indeed, just one branch of the banksters' reckless gambling -- the derivatives market -- is a mountain of (bad) bets more than 20 times as large as the entire global economy.
The gamblers have run amok. If we had any "regulation" of our markets, such out-of-control gambling would have already been reined in. The fact that this has not occurred is proof of the complete absence of such regulation. Proof of the failure of this system (or rather the latest example of such proof) is the collapse-and-looting of
Today's "don't worry, be happy" drumbeat from the media propaganda machine is guaranteed to be replaced by more end-of-the-world fear mongering -- if not tomorrow then the day after. Those who continue to allow their financial decisions to be dictated by the words and actions of idiots and criminals have no one to blame but themselves when they suffer the inevitable fate of lemmings.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.