STREET DOGS: It’s the brokers that coin it
From its early days, Wall Street has been the playground for its dealers
A little history from William Fowler’s book, Inside Life In Wall Street, published in 1873:
The prevailing feeling says buy. The broker says buy. The public give orders to buy these high-priced stocks. The brokers execute their orders and buy. But speedily a cracking sound is heard. The market prices begin to break. The broker quietly throws his customers’ stocks on the market. This helps on the decline. The customer, in sad unconsciousness that his stocks have been sold, clings to his supposed loss. Then he is called upon for more margin, but when stocks have fallen 10% or 15%, from where he has bought, they no longer seem valuable, and at last he gives the order to sell, as eagerly as lately he gave the order to buy. His margin has been transferred to the broker’s pocket. ..
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