Wall Street’s troubles are compounding. It appears that small investors have waken up to the fact that the game is rigged. They are fleeing from casino capitalism in droves.
In a speech Tuesday, Mary Schapiro, chairman of the Securities and Exchange Commission, said the SEC was informed by retail brokers that the Main Street investors they cater to “have pulled back” from the stock market since the flash crash.
To buttress her point, Schapiro noted that stock funds have suffered net outflows every week since the flash crash.
When I wrote this well-received essay a week ago, the net outflows were beginning to gain attention from the media. In the past week, things have gotten much worse for Wall Street.
Because the lack of new “dumb money” flowing into Wall Street, as many as 80,000 banksters will lose their jobs.
Since Washington refuses to enact serious reforms of Wall Street, and the regulators refuse to do their jobs, it has come down to mom and pop investors to starve Wall Street into submission.