Making the Case Against Hartzman
It has been my experience that if you simply wait long enough the truth of a situation will eventually present itself. And so it is with local blogger, political gadfly and stock broker, George Hartzman. While he has begun a whistle blower case against his employer for engaging in various falsehoods, his primary beef appears to be that he can no longer make money in the market for his clients. He places the blame on secret loans his employer received from the Fed, which apparently affected the price of stocks his clients were invested in, without his knowledge. Perhaps that is one of the reasons, but as George knows, it is simply one of many.
As many of us are acutely aware, stock brokers are like the rest of us in regard to the market: on the outside looking in. As has been exhaustively documented here and elsewhere, the record low volume in the market is a function of the inability of the average trader, and the average broker, to achieve effective price discovery due to the prevalence of high frequency trading, record high correlation, naked short selling, unregulated derivatives and proprietary trading by the TBTF banks.
So, while Hartzman’s several beefs with his employer may have some effect on his fiduciary responsibility to his clients, the bottom line is that he currently finds himself in the business of selling buggy whips. As one who has committed professional suicide and begun a new career, I can tell you that the answer is not to wage war with your employer while remaining an employee. If George is so dissatisfied with his employer, then he should gather up his clients and go elsewhere. And therein lies the rub. George knows full well that the game is up and there is nowhere to take them. His only choice, therefore, is to become something other than a stock broker. And given the mountain of evidence indicating his inability to communicate effectively, I wonder at his acumen in the present job and worry at his prospects doing anything else.
It seems if George Hartzman is to escape from the perilous position he has placed himself in, he must finally grow up, accept personal responsibility for his actions and cease relying on others to do it for him.