We considered variety of aspects of the networks and trading, which has left no doubt that the basic principles of a the market, insiders win, is upheld. Insider can be those who possess none public information due to their positions either inside the companies or industry or market making process. That is Corporate Executive's Deep Pocketed Market researchers and Brokers Dealers. Public is SCREWED all the time, unless and until public understands how to cope with all of these factors.
Let us say Goldman tell its affiliated hedge funds that "market is a buy". You see , it does not matter if market was a buy or not. Now it is a buy, because of the power of the Goldman affiliates that start buying. You be sure that you are never told by Goldman the same thing at the same time it tells that to its affiliates and internal groups to start buying. Like you were told OIL will go to 85 when OIl was already closer to 60. You did not know that when OIL was 35 did you? Somebody did! Now, As I said already, I do not know if this criminal or not, I am not a securities lawyer, but I can sure as hell can tell you that dual role of Goldman is/should be not tailorable. Let alone the fact that they can also influence media, which hangs on every peace of (mis)information Goldman wants to put out. You remember , I described to how the market can be "RUN" by few players ganging together. What is a difference between 10 Russians ganging together and "running the market" as compared to Goldman telling 1000 of its affiliate funds and internals groups "buy the market" is not that ganging of sorts.
You see, the reason , the FREE CAPITALISM does not exist any more is that the FED and Government allow the concept of too big to fail to persist. As long as that is the case and markets are not policed with regard to the size and power a single entity/group can obtain , the FREE CAPITALISM is none existent. It is SOPITALISM. System of Government being beholden to special interests, financial , in this case.
Again, I am not a lawyer and do not pretend to speak from the position of the laws, but I sure can tell you that something is totally wrong with regulation and the laws if they allow this to persist.
And What about the aspects of technology. Since the way technology facilitates the advantages of rich over poor in the market, is not somebody, like SEC , supposed to be on the case of COLLOCATION aspects of the exchanges and the rest of NETWORK inequities?
In any case, I can only hope you as an individual investor get better ideas on how the networks and regulations and media information flow operate, to make you a better trader. None of these by themselves will make you really good trader( for that you must trade), but knowing this context creates field of knowlege that prevents you from trying to compete in places where you can not win. For example , while the cost of transactions incurred by institutions trying to compete with Goldman in trade size does not really interest you , because you are a small trader and happy to exectute your trade 1-2 cents away from precise target you want act at. You are not concerned that much with Goldman being after you becuase of your size. Yes, in total thousands of investors still lose money to Goldman, but on the individual bases that is not very improtant given the liquidity of the markets and your gain/loss depend more on your correct trade selection. You are ok with costs if you can transact for 1 dollar a trade like I do. most of the time. Another issue is news and how interpret them. In light of what I told you about the "running the markets" you should gresp easily , why you must suspect every and all news coming from the financial establishment and news media beholden to them. You should develop sense of , who cares what Goldman says, or If Goldman says that it most, likely is already positioned to take advantage of the moves described or , is actually, taking advantage of the news it has just planted!!!. If you anderstood what I just said, you are , light years ahead from where you where before you read this.