Thanks Bill,wvbill wrote:We've talked about market manipulation in these forums...
A must see clip:
http://market-ticker.denninger.net/arch ... ation.html
Bill
Great clip!
Thanks Bill,wvbill wrote:We've talked about market manipulation in these forums...
A must see clip:
http://market-ticker.denninger.net/arch ... ation.html
Bill
Saluzzi's remarks are relevant to a subject that I've touched on fromJoe Saluzzi, Themis Trading wrote: > I'm a realist. I like to cut through the garbage that we hear
> constantly from hopeful politicians and hopeful corporate
> executives, trying to tell you they see things are good.
> Let me see some numbers. Show me the quarterly earnings. Are
> you going to prove to me that second quarter was good, in the
> retailing sector when the savings rate is sky high, and consumers
> aren't spending?
> No, I don't believe it. I'm a cynical person at heart, I guess,
> but I'm also a realist, and it keeps me out of trouble a lot. ...
> The problem is that most people are pessimistic on this market
> right now, but they're afraid because they see the market
> running.
> What my job is during the day is I'm an institutional trader for
> large mutual funds and hedges. So my job is to trade for them,
> and to not get caught upin the noise.
> The volume that you see during the day, sometimes as high as 12
> billion across all three exchanges, is fictitious. It's not
> real. I'm going to say that 60-70% of this volume that you see
> coming across -- it's volume, but it's done by what they call
> 'high frequency traders.'
> These are machines. The biggest machine out there wins the game
> nowadays. And these people deal in sub-seconds. 50 milliseconds
> is a huge amount of time. Anything over that and you're a
> dinosaur in the business.
> So what they do all day long is they buy and sell and they try to
> collect liquidity rebates from the exchanges, who basically in
> partnership with them, and they trade for no apparent fundamental
> reason, and this is my problem.
> And being that we're all in a bullish tape right now, they're all
> just buying. ...
> I trade for my clients. I'm an agency-only trader. My job --
> they make the decisions, I execute around the noise. Some of the
> clients buy, some of them sell, we deal with all different types.
> Some short, and so on. Some are sector based.
> But my job is to make sure -- that during the day when a program
> gets shot through, -- by the way, a billion shares a week going
> through certain broker on the exchange principally with programmed
> trades -- it's a way to get the market to go in your direction.
> And what happens is -- since we're all electronically linked, the
> algorithms that all these programs use, according to the guys that
> I talk to, chase the stocks and artificially inflate the
> prices.
> It cuts both ways. Since we're in a bull tape, everyone is
> jumping on board, but here's the trick: They could run for the
> trap door tomorrow, and if everybody becomes a seller, they'll all
> just go the other way. They don't care about the prices any
> more.
please don't buy that. it's what the tax and spend crowd want you to believe. but it's just not true. they resent the state's initiative process that allows the residents to try (mostly unsuccessfully) to be heard in spite of their politicians. they want you to think we dont pay our fair share of taxes.aedens wrote: The seeds of California's current crisis were planted more than 30 years ago, when voters overwhelmingly passed Proposition 13, a ballot measure that placed the state's budget in a straitjacket. Even more important, however, Proposition 13 made it extremely hard to raise taxes, even in emergencies: no state tax rate may be increased without a two-thirds majority in both houses of the State Legislature.
That was Krugmans view not mine. Select the other links to view the rest of the story.greghaught wrote:please don't buy that. it's what the tax and spend crowd want you to believe. but it's just not true. they resent the state's initiative process that allows the residents to try (mostly unsuccessfully) to be heard in spite of their politicians. they want you to think we dont pay our fair share of taxes.aedens wrote: The seeds of California's current crisis were planted more than 30 years ago, when voters overwhelmingly passed Proposition 13, a ballot measure that placed the state's budget in a straitjacket. Even more important, however, Proposition 13 made it extremely hard to raise taxes, even in emergencies: no state tax rate may be increased without a two-thirds majority in both houses of the State Legislature.
since prop 13, the state government of california has continued raising taxes using workarounds and loopholes until now we have the highest tax rate (personal and corporate) of any state in the country by far. dont believe me about that. google it. we also have a huge state lottery, the proceeds of which go to the state government general fund. due to fiscal mismanagement, our state government also now has the lowest credit rating of any state in the union. this excessive taxation and fiscal mismanagement has caused our state to drop from the 4th largest economy in the world all the way down to the 8th largest within the last 5 years.
our current budget crisis is not about the need for even more excessive taxation. it's all about our state government needing to have some semblance of stewardship and responsibility with the revenues that they already have. our politicians are feasting on the goose that lays the eggs.
the academics who vilify prop 13 are really vilifying the voters who are struggling to overcome incompetent government.
http://generationaldynamics.com/forum/v ... 1280#p3050 <------------ been on the radar at ZHmalleni wrote:Thanks Bill,wvbill wrote:We've talked about market manipulation in these forums...
A must see clip:
http://market-ticker.denninger.net/arch ... ation.html
Bill
Great clip!
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