Mark Cuban, blog maverick, What Business is Wall Street in? here. Mr. Cuban wants to separate the Investment Bankers and the secondary market. Sounds like he wants to impair the ability of the secondary market to derive a “fair value” price because he has no idea about internalization. He thinks the retail investors are losing more money when getting the NBBO than when their market orders are crossed out of the broker’s inventory. Blaming the folks living off the exhaust for the combustion engine harvesting the Retail P&L. Reminds me of the way Mr. Nowitzki always spends his offseason working on offense because he has a limited view of how to play defense. Someone should explain this to Mr. Cuban, its the neighborly thing to do. Mercer County Cash Register doesn’t share Mr. Cuban’s dim view of Wall Street. Let the Investment Bankers figure out how to run their business raising capital for Corporations, God bless them they have enough problems. Not sure that the Wall Street folks know how to build cash registers so good, but they are welcome to try. Its a free country. Mercer County Cash Register will be there to help figure this stuff out. It can be tricky, but it ain’t Inter Universal Geometry.
The only people who know what business Wall Street is in are the high frequency and automated traders. They know what business Wall Street is in better than everyone else. To traders, whether day traders or high frequency or somewhere in between, Wall Street has nothing to do with creating capital for businesses, its original goal. Wall Street is a platform. It’s a platform to be exploited by every technological and intellectual means possible.