*****Videos Explaining High Frequency Trading And The Fed’s Obsession With Secrecy*****

Zero Hedge reports that Bloomberg's Pimm Fox On High Frequency Trading.

(emphasis mine) [my comment]

Thursday, July 23, 2009
Bloomberg's Pimm Fox On High Frequency Trading
Tyler Durden

First Goldman, now High Frequency Trading... The media onslaught is converging.


Zero Hedge reports that Saluzzi Educates MSM On PT, Does Not Buy Books.

Friday, July 24, 2009
Saluzzi Educates MSM On PT, Does Not Buy Books
Tyler Durden

Irene, I would love to get a copy of your book. Are you willing to exchange one Digital Dickweed coffee mug for a few hundred copies? I am sure you have them lying around, and it sounds about equitable.

Also, good thing of Irene to admit that any variant of forntrunning is illegal. We are with you!

[70% of trades are done by 2% of participants. That isn't right.]

Zero Hedge reports about Goldman Sachs Boiling Point And Max Keiser.

Saturday, July 25, 2009
HFT And Goldman Sachs Boiling Point: NYT And Max Keiser
Tyler Durden

Great recap piece in the New York Times on whether or not Wall Street is picking the pockets of "non-club" investors (read - the guys who do not generate 80% returns with a Sharpe > 5.0 - can someone explain how risk/return works again). The consensus sure looks good for class action lawsuit lawyers.

Even the New York Stock Exchange itself is acknowledging the HFT media campaign.

For anybody new to the site, please check out the Zero Hedge glossary for all the relevant articles on specific topics.
[Interesting. I may have to do something like this if I ever find the time.]

And here are the latest ruminations out of Max Keiser, who takes on a curious angle in his most recent Goldman Sachs attack:

Maxkeiser reports that Bloomberg is coming down hard on Goldman.

Friday, July 10, 2009
Bloomberg is coming down hard on Goldman
Submitted by Edward Harrison of Credit Writedowns.

The video linked below is a must-see piece of journalistic skepticism. The duo at Bloomberg News are discussing the recent alleged theft of trading code by a former Goldman employee Sergey Aleynikov who moved to a hedge fund called Citadel Teza, a hedge fund now being sued by Citadel and founded by Misha Malyshev, who left Citadel in February. Their commen tary is incredulous. Their tone seems to ask: "Is the Government working for Goldman now?"

Here are a few gems:

"What is Goldman Sachs doing with this trading code that could manipulate the markets?"

"And Goldman got on the phone to the Justice Department and got them so fast to nail this guy,
it's almost - you wonder if they have a red line to the government."
"It is amazing within one day of Goldman calling they had FBI agents at his driveway doing surveillance. The next day they arrested him..."
"It's interesting that the prosecutor from the testimony that I've read, it almost sounds as if he's working at Goldman Sachs."

Maxkeiser reports that front running and bullying with high frequency trading.

Rigged Markets: Front running and bullying with high frequency trading
July 24th, 2009 by stacyherbert

Stacy Summary: Sounds like the NYTimes is catching up with what we were talking about three years ago. Listen to Catherine Austin Fitts' advice at the very end of Rigged Markets about staying out of a rigged market.

Front running small investors with high frequency trading

High-frequency traders often confound other investors by issuing and then canceling orders almost simultaneously. Loopholes in market rules give high-speed investors an early glance at how others are trading. And their computers can essentially bully slower investors into giving up profits — and then disappear before anyone even knows they were there.

High-frequency traders also benefit from competition among the various exchanges, which pay small fees that are often collected by the biggest and most active traders — typically a quarter of a cent per share to whoever arrives first. Those small payments, spread over millions of shares, help high-speed investors profit simply by trading enormous numbers of shares, even if they buy or sell at a modest loss.

Rebel Traders reports about the good old days, before goldman sachs high frequency trading.

The Good Old Days — Before Goldman Sachs High Frequency Trading
By Chuck · 3:04 a.m. July 24

About The Fed's Obsession With Secrecy

Zero Hedge reports that Ratigan, Spitzer And Toure Clarify The Fed's Obsession With Secrecy.

Friday, July 24, 2009
Ratigan, Spitzer And Toure Clarify The Fed's Obsession With Secrecy
Tyler Durden

MSNBC's explanatory take on how the Federal Reserve "bailed" the system out and why the Fed is so keen on perpetuating the secrecy.

Eliot Spitzer: "The Fed is a Ponzi scheme, an inside job, it is outrageous, it is time for congress to say enough of this"

Visit msnbc.com for Breaking News, World News, and News about the Economy

Zero Hedge reports that "The Banking Infrastructure Is Trying To Protect The Secrecy Of The Federal Reserve".

Wednesday, July 22, 2009
Dylan Ratigan With Ron Paul "The Banking Infrastructure Is Trying To Protect The Secrecy Of The Federal Reserve"
Tyler Durden

Tommy Mottola must be considering signing a record deal with the lately omnipresent Ron Paul.

Incidentally, from Ben Bernanke's ongoing presentation to the House committee, when asked "How does providing factual info on Fed discussions compromise the Fed", Bernanke had this highly illogical reponse:

1. It would inhibit discussion.

2. It would inhibit the provision of information.

3 . It would implicity provide the sense that Congress was second-guessing or trying to overrule the FOMC's decisions.

Did Wall Street chip in for the prompter on this response? The absurdity of Bernanke's answer would likely provide Lewis Black with hours of stand up entertainment fodder.

My reaction: I written about some of the ground covered by these videos in my entry, *****Dark Pools And Insider Trading Growing On Wall Street*****, and I will write more about high frequency trading and the Fed's obsession with secrecy in the future.

This entry was posted in Background_Info, Currency_Collapse, Federal_Reserve, Financial_Wizardry, Market_Skepticism, Videos, Wall_Street_Meltdown. Bookmark the permalink.

One Response to *****Videos Explaining High Frequency Trading And The Fed’s Obsession With Secrecy*****

  1. Robert says:

    Hi Eric,

    Just wanted to draw your attention to this story;

    Bank of China offers mortgages to UK borrowers.

    I'm particularly interested in this part;
    It will insist on meeting each new borrower personally before offering them a loan, and will fund loans from its own capital reserves, a conservative approach that was once the norm in UK banking but fell away in the fervour of the latest housing boom.

    Could this be a scheme for China to dispose of some of it's GBP reserves?

    I wonder if something similar would work in the USA?

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