Wednesday, September 02, 2009



Goldman Sachs went after an employee who stole some of their latest and greatest software this last week. The US assistant attorney general said in the courtroom that the software had the potential to manipulate the market. Imagine that. I am shocked. There is gambling going on in the back room? Gee, commissioner, I had no idea.

All this "algo" (algorithmic) trading also gives a very false impression of volume. If you are a fund and see 10 million shares a day traded, you might feel comfortable that you could hold one million shares and exit your trade easily. But if 80% of the volume is false "algo" trading, that volume isn't really there. You may have a position that will be a problem if you want to exit, and not know it.

"High-frequency trading strategies have become a stealth tax on retail and institutional investors. While stock prices will probably go where they would have gone anyway, toxic trading takes money from real investors and gives it to the high frequency trader who has the best computer. The exchanges, ECNs and high frequency traders are slowly bleeding investors, causing their transaction costs to rise, and the investors don't even know it." (Themis Trading)

... for businesses ...
... if you are bankrupt staying on the stock market is ok ...
... largely overvalued ...
... otherwise is better to convert all the instruments ...
... into "NOMINAL" shares "NOT TRADED" on the stock market ...
... healthy companies should replace any paper ...
... that can be traded on the stock market ...
... with direct non-transferable deeds to the creditors ...
... granting the percentage of the company value owned ...
... as consideration for the credit ...
... and "PULL OUT OF THE ZOO", fast ...
... not to fall victims of trading speculation ...

... for the regulators ...
... now think for a second ...
... high frequency trading made japan almost bankrupt ...
... then again in the US ...
... now they are trying with china ...
... and maybe europe ...
... stock trading has to go back ...
... to the duck feather ...
... to prevent the scumbags ...
... from crashing the planet ...
... the problem it creates is similar to the values of farming futures ...
... largelly inflated, compared with the "real" price of goods ...
... most likely because of the same electronic skim ...

... investors owning stocks ...
... should sell ...
... and buy public transport connected ...
... cheap commercial residential rental property, cash ...
... the former largely overvalued ...
... the later a bit undervalued ...
... in the longer range, buy farming land and silver ...






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