Modern finance is really, REALLY cretin, isn’t it?
I have no problem with people getting rich, even filthy rich, as long as they do it without screwing everybody else, or their pension funds. But don’t you think that what’s pompously called “finance” nowadays, which is how much of that wealth comes from, is a showcase of galactic imbecility? I do, and this is a short rant about the three things in current finance that are the worst ones for me.
You are fervently encouraged to add your examples in the comments, with obvious thanks in advance for one-time donations via PayPal (mfioretti@nexaima.net) or LiberaPay, which as far as I am concerned are even better than (still welcome) paid subscriptions.
Trading instead of investing
For me, “investing” means buying shares on the stock market, that is some amounts of the ownership of some company, for basically two reasons: idealism (you think that company is doing or will do something which you just want to happen because you believe it’s intrinsically good for society) or, much more frequently, profit: you bet that that company will make enough money, over a long enough time, to regularly pay you dividends, eventually, and/or increase the value of its shares, allowing you to sell them some day for more, hopefully a lot more, than you paid them.
Both reasons are 100% good in my book. Without real investors, who take risks to support companies, society would have less opportunities for real innovation (something that’s really, really scarce these days) and real progress, that’s even scarcer than real innovation.
Trading is an altogether different thing. Intra-day trading is gambling, that is just worst because, unlike gambling on e.g. horse races, it too often messes up the lives of people who are not participating in the gamble... even if the gamble itself succeeds. That’s what, to be polite, I intensely dislike.
So, no problem with stock markets for investors. But if I could, I would make it illegal to sell shares less than one year after they were purchased. Seriously, profit is not bad. But speed for the sake of speed in all directions at once is the defining characteristic of cancer cells, not of healthy systems of any kind. Which brings me to the second thing I can’t stand, that is making gambling with other people livelyhoods , I mean trading, even worst.
High speed trading: so bad that only AI could make it worse
The only extenuating circumstance of the gambling in the stock market that’s unfortunately called trading is when it’s only done by humans who must personally watch some monitor and personally type or speak to make trading happen. If trading still only happened that way, as in the “A Good Year” movie:

it would still be bad, but couldn’t do much more than a certain amount of damage, and it would be easier to control.
What I cannot stand period is the very existence of high-speed or high-frequency trading, that is gambling at superhuman speeds, thanks to physical infrastructure costing not less than “$200,000 NRE and $20,000 per month for each venue, plus several million in clearing broker collateral”. I already said that profit and getting really rich are OK to me. But I really can’t see how something that not only directly messes up the lives of people unwilling to play, but it’s only possible to players who already have so much more money of their victims can or should ever be tolerated.
I first explained my position on these practices seven years ago. The reason I am back on them is that, as about anything else these days, superfast trading is likely to become much bigger, much more harmful, and much stupider than it already was thanks to... you guessed it, AI. Here’s the kind of AI-driven financial disruption that central bankers, not the millions of people living paycheck to paycheck if they are lucky, were worrying about a few weeks ago:
“Imagine a world where AI-powered trading is so prevalent, fast and effective that the Federal Reserve must give two news conferences, one for humans and another for machines, to avoid humans being completely shut out of responding to shifts in monetary policy. Or where central bankers, who in recent decades have moved toward more transparency, must speak in opaque terms and act in unpredictable ways to keep AI agents from gaming the system.”
“Or [a world] where monetary policymakers must intervene directly in credit markets and build larger central bank balance sheets... to avoid the risk of AI-driven market manipulation.”
Reading stuff like this makes me both hilarious and angry. The hilarious part is that anybody to be trusted to deal with other people’s (or countries...) money could think for a second that “speaking in opaque terms” (right, as if normal finance-speak is intelligible) or giving separate news conferences could ever be enough to let “AI” (note the quotes) from getting the full information it needs to wreak havoc.
The sad part is the very speaking of “AI” and “AI agents” as the bad actors. I really wish that this kind of talk were illegal, at least for journalists. Who really does something and must be held fully responsible for any harm “AI” causes it’s NEVER “AI” or “AI agents”: it’s always the humans who run or use that software. If there one’s thing everybody should learn in the cradle about “AI”, and repeat daily, is that.
Summing up, superfast trading always was a really stupid, really harmful idea, doing it with AI only makes it even more harmful and less uncontrollable even by its users, that is stupider, and any harm it causes is is only and always the fault of the people who practice it, or let it happen, with or without “AI”. Especially in moment of panics about the bigger public debt in the world getting even bigger, in no negligible part because AI hype sucks all the money that could sustain it. On to the next thing now.
The boundless, inhuman stupidity of prediction markets
As embarrassing as it is, one of the hottest investment areas of 2026, so hot and dangerous to cause histeric calls for urgent regulation, are the so-called “prediction markets”. I’m sad, really.
Even the name of these scams is ridiculous. It’s unbelievable how we can be both rational enough to snob chiromancers, and gullible enough to tolerate, and even respect, anything that, no matter how dumb or dangerous it is, has the word “market” attached to it. Can you believe that the managers of these things have the gall to call them “sophisticated financial products”?
Maybe that is what explains the painfully inadequate “call for regulation” of these “markets”: “State officials from Arizona to Massachusetts have argued that the prediction markets should be subject to the same rules as traditional sportsbooks and casinos.”
Same rules? The reason why prediction markets are bad is much bigger than their “threatening of critical tax revenue and usurpation of state-level consumer protections for sports bettors.”
I don’t question that those effects are bad enough to require serious regulation, mind you. But we’re talking of services that allow wagers, that is profit, on stuff like, quoting again from Politico:
any possible “geopolitical event” that will surely kill people, like military strikes, with or without foreknowledge of said event
more generally, anything predicated on government actions or any event “where an individual knows or controls the outcome.”
if that isn’t enough, add to the list influencing political elections, and all the other filth listed here
Sophisticated products my ass. If it’s OK to bet on people suffering or dying, or events that will have such effects, let’s just bring lions eating slaves back in the Colosseum.
Anything that profits from “bets” like those should be shut down for good period, and anybody daring to call such stuff “sophisticated financial products” should be fined hard enough to end in the street. Do that first, and then regulate what’s left.
Even proposals to ban political representatives and executive branch officials from “participating in prediction markets related to policy decisions and political events” aren’t enough. Me, I would ban from political offices everybody who does consider prediction markets a “financial product”.
Again, this is not an attack to PEOPLE working in finance
There are good, decent people in every legal sector of what we call “the economy”. I am sure that lots of people working in finance are honest folks who do believe in good faith, just like a fish believes water is great and there could anything else to exist in anyway, that what they are doing is good for humankind or, as a minimum, the least worst way to make things work.
This doesn’t change the facts. Entrepreneurship is good. Risk is good. Getting rich for being good at anything that doesn’t cause more hurt than good is good too. Real investing is good, and some finance is necessary to make any kind of modern society exist. But the current set of concepts, rules and allowed moves that we collectively call “finance” and let rule us all is a king that is not just naked: it’s a totally, hopelessly cretin king that the sooner get kicked strong enough to land in an alternate universe the better. We can have a complex economy where people can still get really rich in ways that make immensely more sense than this, and we all deserve it.
Imagining a world with a different finance is surely hard. How could I ignore it? Heck, I started writing that this finance is almost like bringing back lions eating slaves just three days before the champion country of current finance just announced that it will live stream a death sentence, for heaven’s sake. I know it’s hard. But it’s possible, and it’s really overdue.
Thanks for reading to the end, and for never doing trading, high speed trading or “prediction” bets.
