Wall Street WARZONE
Proprietary Secrets: How Quants & Behavioral Scientists Make Mega-Billions for Wall Street Insiders
by Paul B Farrell, JD, PhD
| Discuss | Print | 5/5/2010

Main Street can’t compete—the awesome Wall Street Machine is already using lucrative consulting contracts, grants, non-disclosure, non-compete and other iron-clad employment agreements to lock up the best’n'brightest talent in behavioral economics, behavioral finance, neuroeconomics, investment psychology, neuro-marketing, physics, computer science and other key areas of the neurosciences working in the leading academic research institutes, think-tanks and business. Wall Street has discovered that this talent can generate huge returns for them in the stock market—for example, with financial innovations like securitizing subprime mortgages, collateralized debt obligations, HFTrading algorithms, etc—while helping Wall Street control the minds of Main Street masses. Wall Street’s War Machine needs a steady stream of new players, new weapons and new strategies in its arsenal, so recruiting has become as important for Wall Street as it is for a major league sports team signing stars.

In the past decade we’ve see a powerful wave come surging through Wall Street, reminding us of the government’s Second World War mobilization. Back then, with incredible speed we brought together the best minds to quickly develop the atomic bomb in the top-secret Manhattan Project, while also retooling American industrial capacity for a major war and recruiting and training a huge army. Similarly, today, Wall Street Machine is in the midst of an enormous recruiting effort to hire the best and brightest quants to develop new psych-ops weapons for Wall Street’s “War to Control the American Investors Mind.” The Wall Street Journal wrote about it in “More Professors are Lured Out of Ivory Tower to Street.” That was the first wave. They were talking about names like Princeton Professor Malkiel, author of Random Walk Down Wall Street, Yale Professor Robert Schiller, Irrational Exuberance, and Wharton Professor Jeremy Siegel, Stocks for the Long Run. (More)