In my book, Invest Local, I have a lengthy discussion and demonstration of how the financial industry uses mutual funds to secure guaranteed returns for themselves while diminishing the long term potential for their clients.
Here is a great post regarding the new book Flash Boys that describes how the financial industry takes advantage of High Frequency Trading to skim a tiny percentage off of almost every stock market transaction.
Incredible. The whole system is rigged against the individual investor.
Here is a great article about the book and its revelations from Charles Hugh Smith.