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It is about the fact that Goldman Sachs had, and continues to have, network taps that are closer to the exchange computers than anybody else. They have latency advantages of up to .2ms on trades, which is a gigantic window if they can cache other orders and jam theirs into the front.

Others have pointed out that Goldman Sachs record is statistically IMPOSSIBLE. See Seeking Alpha here:

http://seekingalpha.com/article/154083-goldman-is-its-trading-performance-statistically-reasonable?source=commenter

Also, the exchanges have seen rashes of NOP orders placed. Fake trades designed to jam the queues to create artificial windows of opportunity to front-run big market movements. Goldman Sachs is probably (fuck probably, they are certainly) gaming NBBO and pocketing the difference millions of times a day.

For the less market knowledgeable out there (basically, most of Slashdot), they are running the scam Richard Pryor did in Superman, or in Office Space. They are skimming pennies off the market by seeing a trade ahead of it hitting the exchange, then jamming NOP orders in while they calculate and move a trade ahead of that to piggyback on the effect of the larger trade on share price.

Denninger has been all over this story:
http://market-ticker.org/akcs-www?singlepost=2139302


Sergey's code probably contains stuff in it that jams NOP orders into the system, or shows how it using something simple like the dragon tools or plain ol' tcpdump to inspect orders as they fly-by on the tap. In fact, Sergey's code may PROVE beyond a reasonable doubt that Goldman Sachs is tapping the NYSE Exchange computers ethernet feeds. That would be a bombshell of the first order.

Like I said, look beyond the technical press and look at the financial press. Goldman Sachs is coming to the poker table with a marked deck and it can be statistically proven.

HFT is a smoke screen. The frequency of trading is moot. if I can look at the world's trades before they hit the exchange and process and effect NBBO, I now have a license to print money. Doing it high frequency just makes the printing press run faster.

What are you, a bankster shill?

Millions of people are discovering that they are effectively debt slaves for life because the pay prospects of their chosen career was vastly exaggerated when they choose to take on the loans.

Then there's the fact that only 20% of 2009 graduates got a job right after graduation.

If you actually do the math except for a handful of degrees, you're financially better off not going to college at all than taking out loans to go to college because the advantage of increased salary prospects during your working life is more than completely consumed by extra debt service.

Exactly.

Karl Denninger has been reporting this problem for a few years now.

Karl Denninger has been reporting this problem for a few years now.

Okay, he did keep the economy from crashing.

Is that a joke? I'm bookmarking that post so that we can revisit it at a future date.

And he did pass Wall Street reform

An utterly toothless piece of legislation.

keeping the tax cuts for the middle class

Bullshit. Everyone's taxes are going up.

And he did hire a pay czar to claw back that stolen money, which did work

Please cite a dollar amount of bonuses that were returned.

Worlds of difference, as I have pointed out.

Again, are you joking or just that deluded?

High Frequency Trading Is A Scam

http://market-ticker.org/archives/1259-High-Frequency-Trading-Is-A-Scam.html

http://www.investingblog.org/archives/520/goldman-sachs-high-frequency-trading-scam/

Sheila Bair hasn't enforced the (non-discretionary) Prompt Corrective Action law on any of the largest TBTF banks.

Henry Paulson lobbied for the repeal of the last vestiges of Glass-Steagall while he worked for Goldman Sachs and then committed extortion by threatening Congress with martial law unless they handed over $700 billion to a group of unapprehended felons.

The FBI warned about about an epidemic of mortgage fraud back in 2004 yet the last two administrations have not indicted a single major player in the industry.

But by all means, ignore them and pay attention to the small fry browsing porn.

>>> Dimihsing Productivity Graph - http://market-ticker.org/uploads/2010/Mar/Diminishing-Prod.jpg
.

"But we have to KEEP SPENDING because we're in a depression! Now is not the time to cut spending." - typical Democrat or Obama supporter. To me this is equivalent to my family carrying a $130,000 credit card debt and saying that I need to go buy a new roof for my house, when in reality I should be canceling my cable/cellphone/internet and other extraneous expenses to pay-off the debt & weather the current storm.

Like this guy wisely said: http://www.youtube.com/watch?v=94lW6Y4tBXs

It's worse than bankruptcy. If that graph doesn't make you sick to your stomach then you aren't paying attention.

Now we will wait and see if the apocalypse that conservatives told us this would bring arrives.

The apocalypse is here and this bill won't prevent it.

It is a desperate grab for tax revenue to shore up a faltering budget.

Real health care reform would either include a single payer system or a rational free-market plan. Nether party is willing to do this, however. I wonder why...

It is a desperate grab for tax revenue to shore up a faltering budget.

Real health care reform would either include a single payer system or a rational free-market plan. Nether party is willing to do this, however. I wonder why...

This country better get it's head out of it's ass, and start deploying common sense.

While a lot of people reading will probably blame Microsoft, we should be shutting down DC in protest on other issues.
If you want to bitch at microsoft, try getting IE patched up or make it removable!
Microsoft's 100 billion tax loophole (hedge) ain't nothing compared to $65 Trillion damage these banks, mortgage people, and oath breaking termites in our Senate who are supposed to be regulating them have gotten away with and indeed are still getting away with.

The problem here is there's no COPS, and the laws change from day to day.
Microsoft's 100 billion tax loophole ain't nothing compared to 65 Trillion damage these banks, mortgage people, and oath breaking termites in our Senate have gotten away with, or pretend to exist in some secret vault which no citizen may check on. It's all classified it's so dangerous. It's no wonder the markets are unstable, trust is completely vaporized. What's next a false flag at the olympics or false flagged up with an underwear bomber who someone (sic) let on the plane (Oft called the "Christmas Day Bomber" (sic) by the fascist zero information spun corporate owned media--enjoy the body scanners though!) Meanwhile.. while the dow saws the market up with 500 potentially 5000 point daily (Okay I exaggerate) changes which wreak havoc (fact) on unsuspecting 401K's with the $USD / Treasury / Bond manipulation they ought be called a 201K's now like ticker-guy says anyway it'll be worse when it's cashed in, if there is even a monetary system left, and if that's the case it won't be long until our government fails.

- I lean on the side of it's "already failed now" myself
Na leave Microsoft alone.

Unless the next lawsuit is not about suing for money, but instead suing to force them to fix their os's, or make IE / AX removable or something damn it..Linux up the compatibility and these stupid proprietary frickin standard nonsense. OPEN FTP.MICROSOFT.COM AGAIN FOR UPDATES! no more "official" malware which cripples or spys the os. WAG/WAT

This country better get it's head out of it's ass, and start deploying common sense.

While a lot of people reading will probably blame Microsoft, we should be shutting down DC in protest on other issues.
If you want to bitch at microsoft, try getting IE patched up or make it removable!
Microsoft's 100 billion tax loophole (hedge) ain't nothing compared to $65 Trillion damage these banks, mortgage people, and oath breaking termites in our Senate who are supposed to be regulating them have gotten away with and indeed are still getting away with.

The problem here is there's no COPS, and the laws change from day to day.
Microsoft's 100 billion tax loophole ain't nothing compared to 65 Trillion damage these banks, mortgage people, and oath breaking termites in our Senate have gotten away with, or pretend to exist in some secret vault which no citizen may check on. It's all classified it's so dangerous. It's no wonder the markets are unstable, trust is completely vaporized. What's next a false flag at the olympics or false flagged up with an underwear bomber who someone (sic) let on the plane (Oft called the "Christmas Day Bomber" (sic) by the fascist zero information spun corporate owned media--enjoy the body scanners though!) Meanwhile.. while the dow saws the market up with 500 potentially 5000 point daily (Okay I exaggerate) changes which wreak havoc (fact) on unsuspecting 401K's with the $USD / Treasury / Bond manipulation they ought be called a 201K's now like ticker-guy says anyway it'll be worse when it's cashed in, if there is even a monetary system left, and if that's the case it won't be long until our government fails.

- I lean on the side of it's "already failed now" myself
Na leave Microsoft alone.

Unless the next lawsuit is not about suing for money, but instead suing to force them to fix their os's, or make IE / AX removable or something damn it..Linux up the compatibility and these stupid proprietary frickin standard nonsense. OPEN FTP.MICROSOFT.COM AGAIN FOR UPDATES! no more "official" malware which cripples or spys the os. WAG/WAT

And if that happens, I foresee a big jump in the sales of torches, pitchforks, tar and feathers, and boiled rope.

See the writings of Karl Denninger for more information.

You are absolutely right about how the Bush administration allowed the country to be looted.

What you are missing is that Obama hasn't done one damn thing to stop it.

Face the facts - the banksters own both parties. If Obama wasn't their lapdog then we would have seen this speech already, but we haven't.

My Fellow Americans.

The last three decades have been marked by outrageous scams and frauds throughout our financial system. This is not a partisan political issue and has consumed both Democrat and Republican administrations and Congresses alike.

As of today, that era has ended.

To those who believe that blowing bubbles, making homes unaffordable for the common man in this country or driving stock prices to ridiculous levels based on hype and false claims is a means to become wealthy, your days of being able to strip the wealth of the common American have come to an end.

Those federally-chartered institutions that promote a "bubble economy" based on unreasonable and unsustainable levels of debt will find that this administration will do everything in our power to revoke those charters. This includes but is not limited to The Federal Reserve.

To those who have ripped people off, including those who marketed and sold worthless securities, those who claimed to have "protection" against market events when they knew the person they bought from had no money to pay, or who worked together to make loans and sales to people through the use of various lies, such as falsely overstating incomes, you will soon be facing a jury of your peers.

I am today directing the FBI and Department of Justice to open and begin investigations, starting at the top. Each and every one of the large financial institutions in this country, including the banks, GSEs and their officials that operate under a federal charter or banking license will face a forensic audit. We will identify and bring to justice all of those who have robbed this economy of its vitality and stolen your futures. Where possible we will claw back every penny of these individuals and firms' wealth so as to provide you with whatever compensation we can recover. Those firms who have committed wrongdoing will be broken up and their officials barred from serving in the banking or securities industries in the future.

Our own administration and the people in it will be subject to this investigation, as will all members of Congress, the lobbying firms and interests that interact with our government. There will be no sacred cows and no rocks that will be left unturned.

We will investigate homebuilders, realtors, appraisers and mortgage brokers. We will look into the FHA, Ginnie Mae, Fannie Mae and Freddie Mac and determine exactly how all of these loss-producing loans came to be made. Where we can identify persons or corporate procedures that led investors, firms or people to be misled, we will bring charges.

The days of theft and fraud from the American public, followed by demands to be bailed out when these scams and schemes reach the end of their rope, are over. Civil and criminal penalties have and do exist for these offenses, and they will be enforced to the fullest extent of the law.

All Americans deserve to be able to invest with confidence and rely on the statements and publications put forward to them. Americans deserve to be told the truth. When Americans are ripped off, they deserve justice. Beginning today, every American will receive exactly that.

The days of the "Wild West" on Wall Street and K Street alike are over.

Thank you.

Your last link should probably be http://market-ticker.org/archives/1454-Has-A-MERShole-Opened-Up.html

Banks and other instutitions have flagrantly ignoredfederal and state laws, and in many cases it appears that they screwed up so badly that no one actually has legal standing to forclose!

Banks and other instutitions have flagrantly ignoredfederal and state laws, and in many cases it appears that they screwed up so badly that no one actually has legal standing to forclose!

Banks and other instutitions have flagrantly ignoredfederal and state laws, and in many cases it appears that they screwed up so badly that no one actually has legal standing to forclose!

Banks and other instutitions have flagrantly ignoredfederal and state laws, and in many cases it appears that they screwed up so badly that no one actually has legal standing to forclose!

Oh wait...it already IS but our media are too focused on important shit like Michael Jackson: http://market-ticker.org/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html

Easier solution

A government as large as the US does not play by the same economic rules as a family or a company.

I'm sorry, but no matter who you are 2+2=4

Debt is not always a bad thing.

Self-liquidating debt is good. Can you explain how much, if any, of the $2 trillion planned deficit for this year is self liquidating?

But the current debt is still considerably lower than the debt was after the Second World War.

Only if you look at a part of the picture. If you add up ALL debt (government, personal and corporate) the picture is much worse.

Not really. At least, not all that much (for instance, many people seem to be happy to finance the purchase of a house using compounds interest, and a not inconsequential number of those people manage to end up owning a home).

And we all know that this is working out just fine at the moment.

And I do think that this sucks, but we are still pretty far away from unsustainable (with hints of going for it over the next few years, but why hope for the worst?).

Hope has nothing to do with it. Math does not change based on hope, desires or votes in congress. See the graph in this article.

My point is that more options exist than just 0 or inifinity.

10:1 is what Karl Denninger is calling for

For more info see Karl Denninger's blog