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The Wall Street jungle

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The Wall Street Jungle, by Richard Ney

Richard Ney majored in Economics at Columbia University. He became an actor (`Mrs. Miniver') then an "investment adviser". Ney predicted the stock market crash of May 1962. The `Preface' says the investment business is a practical means of making money for those with a talent for doing this. Money gives status and power that is unique in our society. The procedures of the Stock Exchange benefit its financial establishment at the expense of individual investors. There is more larceny in the New York Stock Exchange (NYSE) than any other place in the world (p.8). It is so powerful that it is identical to government itself.

Many people believe that stock prices result from the actions of buyers and sellers. This is not so (Chapter 1). Ney says specialists manipulate the prices (p.16). They control the buying and selling of their stocks (p.17). There is a conflict of interest between the specialist and his customers (p.18). Are prices rigged to favor the specialist (p.19)? After the assassination of JFK specialists profited when individual investors lost. When caught, the super-rich avoid punishment (p.21). The financial power and political control over economic resources by the NYSE are related to the big money institutions that use it for buying and selling (p.24). The NYSE buys off Senators, Congressmen, and even a Supreme Court Justice (p.25). Insiders are able to profit when a stock falls in value (p.26). The greatest advantage for a specialist is their control over sales and the knowledge of prices (Chapter 2). Demand for a stock may tend to send its price down (p.31). Ney explains how prices can be manipulated (pp.34-35). One example is on page 40. Did insider knowledge cause a drop in the price (p.44)? Chapter 3 illustrates the powers of a specialist.

Chapter 4 explains how specialists can manipulate prices for their personal benefit. Public demand can send a stock's price down (p.67). Chapter 5 explains why selling short works for specialists but against the investing public (p.72). The NYSE is part of the interlocking interests of the powerful rulers of America. Corporate management seeks to profit from the fluctuations in the price of their company's stock (p.87). Chapter 7 explains how proxies are voted by brokerage houses. This allows influence over the corporation (p.90) and the economy (p.91). Using stocks as collateral for a loan is a potential threat to market stability (p.102). Chapter 8 comments on the Federal Reserve System as part of the financial establishment. A collapse of the stock market could lead to the collapse of the banking system (p.103). Interest rates can be manipulated to influence stock prices (p.106). The Fed's policies helped to create the Crash of 1929 (p.107).

Selling big blocks of shares creates profits brokers but does not benefit the economy or society (Chapter 10). Regulatory agencies act for the regulated not the public (Chapter 12). Was the SEC flawed from the beginning (Chapter 14). Should speculation on the Stock Exchanges be allowed to affect the economy (Chapter 15)? Margin speculation is like a cancer that slowly destroys the economy (p.236). Chapter 16 has Ney's comments and criticisms on the Stock Exchanges. How many of these problems continued to exist and helped to create the worst Depression since the 1920s-1930s?
The general public may not understand all of this book but will be educated by what they do understand. It can explain the many events that you may recognize.

Here.... finally is the answer to all the strange things that go on, on Wall Street. i.e. Why a stock price goes DOWN when GOOD news comes out about the company and visa versa why the stock price goes UP when BAD news comes out about it such as the silly statement... "Wellll, the Bad news was not as bad as originally projected". Duhhhh!
The "Wall Street Jungle" shows with facts and great research as well as examples of who is really behind the movements both up and down and the "Insiders" who benefit themselves at the expense of the Investors they are supposed to be protecting. Great Job.