This is a posting that shows there are more powerful and sinister forces behind our government and our economy. If you are or were an investor, then you will be seeing red when you finish reading this. It will also make you a more cautious viewer of CNBC and some of its minions like Larry Kudlow.

LAS VEGAS, NV (July 12, 2009) – I am constantly amazed at what people and businesses will do to screw people.

It could be something as small as this. And I saw this happen between two people I put together. Bill owns a house for rent. Jon says he needs a place to stay. Jon gets Bill to drop the price 20% on a three month deal. Bill agrees even though the rent will not cover the mortgage and other expenses.

But only after a month, Jon quietly leaves the house and doesn’t pay the remaining month. Bill, needless to say, is upset. “I was losing money as it was. If he had at least told me I could have at least gotten someone else in there,” he told me.

Small item? Sure. But that seems to be the norm today.

Here’s another example. Jen, another friend, hears about an investment in a start-up. “What will my $3 million get me?” she asks. Jen is a wealthy woman with a large trust account.

I get her all the investment info and connect her to the entrepreneur. For weeks, Jen is courted by the entrepreneur until she fails to respond to any calls. Then she emails us to say the lawyer handling her trust won’t let her invest.

First, why didn’t we know this? Second, then you really don’t have the money as you said you did.

Another person kept telling me about the access he had to loads of investment dollars and loans. But he would need the entrepreneur to pay up front document fees. When I asked him to put the fees into the deal to be repaid once the loan or investment was made, he was no longer interested.

We have become a scam society. I wrote about this in December about two men fighting over a grocery cart when it was clear one man had bought the groceries while the other was trying to steal them as he left the store.

If that man had gotten the food he never paid for, he probably would have been proud of himself. Others might have patted him on the back.

As a society, we have turned greed into a virtue. Now we’re beginning to see that Wall Street has taken it to a degree most of us can’t even understand.

Take a look at this report from Themis Trading. It documents why the stock market has been so volatile and how computerized traders have stolen (my word) billions from investors.

I’ll let you read it in full. It’s only five pages. But in short, these traders have such powerful computers they can enter buy orders and within seconds withdraw orders when they see there will be no takers. When there are takers, they short the stock at a price under what some other investor is willing to buy. They take profits and they get transaction fees.

This is pure and simple non-transparent market manipulation.

The article was brought to my attention by John Mauldin whose blog is Thoughts from the Frontline. I have written about him before and recommended you read him faithfully. He also recommends you write to the SEC and urge them to enact the solutions Themis Trading offers. I would agree. Here’s the address. tradingandmarkets@sec.gov

This is stuff you probably won’t see on CNBC or Bloomberg. They protect the sponsors, advertisers, and the exchanges that offer them inducements such as shooting their shows live on the trading floors. You really think they’re going to bite the hand that feeds them. Just listen to the optimistic garbage they’ve been touting about the economy coming back. Green shoots is the phrase of the year so far. And now we’ve seen another drop in the market.

People like Larry Kudlow and Jim Creamer scream for less regulation. As I’ve said in the past, both these entertainers parading as journalists need to be muzzled or at least you should have a warning on your TV screen appears when they talk that says, “Beware of One-sided BS that will cost you dearly.”

Folks, let’s get this straight. The economy is far from healed. Two things are holding it back.

First, the consumer is tapped out. Their home or credit card is no longer that liquid ATM. Those that have money are hoarding it either in cash or savings accounts. Without the consumer spending, the economy does not grow.

Second, the shadow banking system no longer exists. These folks bought bank loans and then securitized them into investment vehicles. When banks can’t get the loans off their books and get paid for them, they have less money to lend. And what money they do have to lend, they’re going to be real tight with it – offering higher rates and more collateral that aren’t advantageous for the lender.

Until those two things change, we’re going to continue flounder.

We have two choices. The first is to enact a second and much larger stimulus package that goes directly to job creation. Yes, there are long-term dangers. We will spike the already high national deficit and probably place more debt onto our kids. But the second choice is to do nothing and destroy large parts of the economy and the livelihoods of many people.

I am willing to take the gamble on the first choice. I have faith that we Americans will find the new innovations and inventions that will re-launch our economy, leading to more revenues to pay down our debt.