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For many in this country economics have become a nightmare. On top of all of the basics about how money works, another layer has come completely unraveled. That being the business of “shadow banking”.

To the degree that the population becomes wise to how this works, is the degree to which all of us can avoid the pitfalls of financial oppression.

The warning signs were clear that nothing good would come from the development of Collateralized Debt Obligations, CDOs. I was fortunate to have been in banking and in a group which voiced serious concerns over the development of crazier and crazier esoteric instruments. They were to be peddled as “same as cash” but were in fact far from that. By July 07 the auctions for these began to fail as financial institutions backed away.

The bankers started pushing the CDOs out the door. They managed to get them off their books and into the hands of others, most of whom were sold these as “same as cash” which of course they were not.

The instruments were created by companies such as Blackrock and Nuveen. By mid-February 08 the market for these seized up entirely. We are talking about a 300 billion dollar market freezing up.

Those who had trusted that these instruments were really the same as cash found their economic lives grinding to a halt. The regulators of course were flooded by complaints.

The brokerages insisted that they had done nothing wrong. Investigations ensued. Brokerages agreed to make their smaller investors whole at least.

Was the press interested? Well, it didn’t boil down to a quick set of soundbytes. Besides, the perpetrators were some of the biggest financial institutions in the country.

Finally, when Bernanke and Paulson held the country ransom for 700 billion dollars the story got media attention.

What kind of accountability is it that plays Robin Hood on the taxpayer for the benefit the banks?

Two days after the Presidential Election the markets continue to sputter. The word on the street is that that market is not pleased with the idea that full the street will not get full bonuses at year end.

So what kind of bonuses are we talking. Dick Fuld, had in 07 cleared 34 million.

Clearly Rand’s notion of enlightened self-interest did not trump raw greed for the banking industry. For more on Rand, see Objectivism and the 1957 novel “Atlas Shrugged”.This all plays nicely into the capital C Conspiracy Theorists who are ready to gloat over the “I told ya so’s”.

These “Too big to fail” are not national institutions. They are international. The idea of a sovereign nation is a thing of the past.

Will the New Vikings prevail? Stay tuned

James Horne has been a financial analyst for over 10 years. He is CEO of Pure Reason LLC, the home of Shadowtraders. His voice has been heard by hundreds of students learning to trade Futures with Shadowtraders online day trading strategies. Before you buy any trading software, make sure you attend Shadowtraders Monday Night Webinar, and hosted by Barbara Cohen

People throughout the world want to be day trading for a living. But potential traders tell us that, “I really want to day trade instead of working, but I just can’t afford the funds required by the brokerage to open an account. Since 9/11 in order to day trade stocks, the NYSE and NASDAQ say you must have at least $25,000 to open your brokerage account. With the tight economy everyone is experiencing worldwide, with highest ever unemployment, $25,000 can be an actual barrier.

At last there is a way for you to be day trading and not have to have the minimum $25,000 in your brokerage account. It is another form of trading education… learn to day trade Emini Futures Trading. EMini Futures trading affords you the ability to open a brokerage account with a mere $2,500, significantly less than what it costs to open an account for day trading stocks. There are several highly volatile Emini Futures contracts that need just $500 / contract for daytrading. Name a stock today that you can be daytrading for just $500 that has both liquidity and volatility.

As an example of a contract you can be daytrading for a mere $500/contract…the Emini S&P 500 Futures Contract. On margin, the S&P 500 Emini only requires $500/contract, and there are several brokerages where you can trade for even less.

The Emini S&P 500 is a Futures Contract. The “E” means it trades electronically over the internet, and the “Mini” means it is a smaller version of the exact same contract traded by the hedge funds and institutions. Futures trade in “Contracts” instead of shares. The symbol for the Emini S&P 500 Future is “ES”. Think of trading this Emini as if you were day trading all of the top 500 stocks that make up the S&P 500 Index at one time. The Emini S&P 500 Futures Contract goes up and down just as the S&P 500 Index does on the New York Stock Exchange.

Think of day trading Emini Futures as the same thing as day trading stocks. Your technical analysis charts that you use with stocks work the same, with MACD, stochastics, moving averages, etc. You can use the same trading strategies and same trading software that you would when you are day trading stocks. You can setup up trading alerts, the same alerts that work with your stock trades. Best of all, you are trading the S&P 500 Emini, a contract that represents all the top 500 stocks on the NYSE. You’ll only need 1 technical analysis chart to represent all 500 stocks, not 4 or 5 charts.

Day trading 1 Emini S&P 500 requires about $500 per contract. That depends upon your broker of course. Emini S&P 500 Futures day trade with margin, and your broker must decide the margin he can allow for each customer. Most Futures brokers permit your trading 1 contract for $500. You really should open an account with a Futures broker not a brokerage that primarily trades Stocks and also allows day trades Futures, because Futures Brokers offer discount commissions and lower margins.

For each “tick” profit, the Emini S&P 500 earns you $12.50. 1 tick is 1 price movement, like 1 penny increase on stocks.

Lets see an example of how E-Mini S&P 500 Futures day trading compares with daytrading 100 shares of stock that will cost you $25/share. Remember, day trading 1 S&P 500 Emini Futures contract will cost you $500/contract. To begin, you generally day trade stocks in 100 share lots, so initially you’ll need $2500 for that stock. With the S&P 500 Emini Futures Contract, you can be day trading with just $500, because you can trade Futures with just 1 contract. In order to profit $12.50, the 100 stock shares would have to appreciate about 13 cents, 13 real price movements. The S&P 500 Emini, conversely, only needs to appreciate 1 tick, just 1 price movement. Comparing each investment, dollar for dollar, you could actually trade five S&P 500 Emini Futures contracts for the same $2500 investment for the 100 shares of stock. In that way, 1 tick gives you a handsome profit of $60 not $12.50. Each share of stock must now appreciate $6.00, or 600 price movements, to equal the profit from day trading 5 S&P 500 Emini contracts moving up only 1 price movement.

Here is the best part. One price movement day trading the S&P 500 Emini could take you under 4 minutes of actual live trading time. Perhaps your elapsed time in front of the computer may be longer, but actually live in the Futures Market, less than 4 minutes.

If you would like more information about this kind of day trading, attend a Monday night Webinar hosted by http://Shadowtraders.com. See for yourself what trading Futures is all about. Shadowtraders offers a 4-Day intensive online trading seminar, an online trading course, trading software with built in trading strategies and trading alerts using technical analysis charts.

Barbara Cohen is a professional day trader. She has trained hundreds of students to trade Futures with Shadowtraders trading systems. Before you purchase any trading software, make sure you attend Shadowtraders Monday Night Webinar, and hosted by Barbara Cohen