Professor soltes, good morning. Good morning. Its a pleasure to have this opportunity to speak to you about your book, why they do it. Let me start with asking you, how is it that you came upon deciding to write a book about the perspectives and backgrounds and thinking of white clar criminals . Im a financial economist by training. This book began when i was a graduate student working on large Empirical Data sets, up at 3 00 in the morning and came across a show called msnbc lockup, the kind of thing that you watch at 3 00 in the morning. And on the show, they had a crew go into various prisons and they were interviewing convicted fellons, mostly for murder, assault, rape. I started to think about the kinds of people that i wonder and think about, the people who are the industries and finance of what we saw on the color of fortune, the commencements, donating generously and wondering what happened to these guys . The people that many people respected. They were convicted for offenses.
Wall street comes up with a new twist that can if youre not protected. Make you feel like its not worth it to be involved in our stock market. I cant tell you when theres bad news involving ipos and say how can people take this anymore . The abuse . The answer, frankly no other choice. You cant make enough money in any other asset class particularly bonds where the rates are so so low. To be able to retire or take the trip you want. Pay for tuition. Bonds cant pay that tuition. You got to own stocks. You need a survival handbook. Thats what im giving you tonight. The Insider Trading scandaling of the 1980s. I traded through that. That had to do with machines gone wild. Didnt have anything to do with the economy. It looked like it was going to get weak because of the crash. We do seem to have ratcheted up the unfairness in the last couple years. I dont mean the economic fallout. Who can forget the event that was the long awaited facebook fiasco . May of 2012. Now this was a one in a lif
Bad as that one, wall street comes up with a new one. And it can, if youre not protected, make you feel like its not worth it to be involved in our beloved stock market. I cant tell you how many days i have come out here where there is bad days about insider training or flash crashes and say to myself how can people take this anymore . The abuse. Frankly, there is no other choice. You simply cant make enough money in any other asset class. Particularly bonds where the rates are so, so lo to be able to retire or take that trip you want. Pay for tuition. Bonds cant pay that tuition. You have to own stocks. You know what you need . You need a survival handle. Thats what im giving you tonight. First, scandal is not new to wall street, there has been scandals since the 1980s. The 87 market crash and i traded through that. It didnt have anything to do with the economy, it looked like the economy would get weak because of the crash and it didnt, it was strong. That said we seem to have really
How can people take this anymore . You simply cant make any money in any asset class. Particularly in bonds where the rates are so, so slow, or to be able to pay for tuition. Bonds cant pay that tuition. Youve got to own stocks. You know what you need, though . You need a survival handbook and thats what im giving you tonight. Scandals are not new to wall street. Stock markets, mechanisms havent always been smooth. The 87 market crash, i traded through that. It didnt have anything to do with the economy. It looked like the economy was going to get weak because of the crash. It didnt. It was strong. That said, we do seem to have really ratcheted up the unfairness in the last couple of years. Who can forget, for instance, the hideous event that was the longawaited facebook fiasco in may of 2012 . This was a once of a lifetime opportunity. A company has sterling reputation, a love product. Management quirky but no more quirky than google. Everyone in it had already gotten rich. The compan
Business confidence there down for the first time in five months. Our roadmap begins with the nasdaq looking to turn around a second consecutive slide in biotechs, deterioration in what some of these momentum stocks we say. Cloud storage firm box planning to raise over 250 million in an ipo and list under the ticker box. Reports that manager knew of the gm ignition problems prior to the launch of the cobalt and withheld some vehicle data. First up the nasdaq hoping to rebound the morning after the selloff which saw the index closing at 5 1 2 week lows and biotechs took a hit and tesla and netflix. We talked about it yesterday, and wonder if this is a longerterm dynamic in terms of leadership. I think that gilead comeback yesterday was significant but a lot of the others didnt. You know, were going to be talking about box filing and i look at that offering and i say or drop box, too, i say, these are the kind of companies that are putting a lot of pressure on the rest of the companies.