Information is everything. Unparalleled access to information and the hoarding of the data collected are cornerstone principles of an economic system that is defined as an oligopoly.

How does this work? Rather than my writing, let’s take a quick 2-minute view of what is going on within the oil markets. 

Do you think an individual or smaller organization trying to trade the oil markets stands a chance against this sort of activity? Certainly not.

But I can hear those out there who would defend this sort of surveillance and information gathering as part and parcel of free market capitalism. Let’s take it a step further, though. As highlighted in the WSJ’s commentary,

“Is the information so valuable, and so hard to get, that only a few people can get it? That creates a barrier to entry.”

What is the knock-on effect when there are enormous barriers to entry? Collusive behaviors and periodic bouts of market manipulation.

We have experienced all too many examples of just such activities across a wide array of consumer and investment markets. Throw in a strong helping of regulatory capture if not outright corruption and what do we have?

Wall Street’s impact on the US economy circa 2013.

Navigate accordingly.