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HomeGoldman’s Perfect Quarter Indicates Game is Fixed
Posted by Larry Doyle on May 10th, 2010 10:12 AM |
Those involved in fixing the scores of athletic events will intentionally lose every once in a while to give the appearance that the games themselves are on the up and up. For those betting on athletic contests, beating the point spread each and every time would be a strong indication that the games are fixed. Similarly, casinos are happy when players win so that other players will enter the game. If the house always wins, sooner or later fewer and fewer players will enter that casino.
The crowd at Goldman Sachs ,along with their cronies in Washington, may want to heed these lessons. Why do I write this? (more…)
Euro Crisis Merely Delayed, Not Averted
Posted by Larry Doyle on May 10th, 2010 8:39 AM |
They blinked.
The European Union and European Central Bank stole a play from the wizards in Washington to avert an immediate currency crisis in the EU and the potential ripple effect around the world. Did they do the right thing? For me, the question of addressing the fiscal crisis within the EU is not one of right or wrong; rather, when the crisis comes, how large will it be and how long will it last?
The trillion dollar package provided by the European Central Bank, the European Union itself, and the IMF is a combination of loan guarantees and quantitative easing. Shock and awe and punish those who would dare sell the Euro short, right? Clearly, the massive injection of capital will squeeze those who have shorted the Euro, but what about the long haul?
The EU is subverting the very tenets upon which the union was founded. Those tenets precluded this type of financial bailout. (more…)
No Quarter Radio’s Sense on Cents with Larry Doyle Welcomes Bill Berliner
Posted by Larry Doyle on May 8th, 2010 1:42 PM |
UPDATE: This episode of NQR’s Sense on Cents with Larry Doyle has concluded. You can listen to a recording of the episode in its entirety by clicking the play button on the audio player provided below. Once the audio begins, you can advance or rewind to any portion of the episode by clicking at any point along the play bar.
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The challenges on our economic landscape remain daunting. While employment and manufacturing may be stabilizing, the housing and mortgage markets remain mired with real issues.
The issues within housing and mortgages are at the base of our economic crisis encompassing both Wall Street and Washington. From structured transactions on Wall Street to financial regulatory reforms in Washington, the issues ultimately come back to housing and mortgages. I will discuss all these issues on Sunday evening from 8-9pm ET as No Quarter Radio’s Sense on Cents with Larry Doyle Welcomes Bill Berliner. Bill Berliner is uniquely qualified to address these topics. (more…)
May 8, 2010: Market Week in Review
Posted by Larry Doyle on May 8th, 2010 9:33 AM |
The bill comes due.
This week’s bill is in Greece. The bills right behind it are in other EU nations. The larger bills are in the UK and the US. How will they be paid?
A combination of fiscal austerity measures, debt restructuring, monetization through currency devaluations, and potentially defaults. The civil unrest playing out in Greece is likely a precursor to similar unrest in other nations. Unless and until real fiscal discipline is implemented and executed, this civil unrest will spread.
Fiscal discipline may stunt short term government stimulated economic growth, but that is the only remedy for a path to long term economic prosperity. Washington has shown no appetite nor inclination to write this prescription. Our future is and will continue to be very challenging until they write the prescription. As I wrote the other day, “Athens Today, London Tomorrow? Washington Next Week?”
Welcome to the Sense on Cents Week in Review where I provide a streamlined recap of month-to-date market returns. (more…)
From the Archives: High Frequency Trading Debate: Mano a Mano
Posted by Larry Doyle on May 7th, 2010 2:44 PM |
In light of the structural problems displayed in the market yesterday, I believe it is timely to repost a commentary from last July:
In the spirit of continuing the dialogue on high frequency program trading, please view this ‘mano a mano’ debate on CNBC.
In one corner is Joe Saluzzi of Themis Trading. In the other is Irene Aldrige, Managing Partner of Able Alpha Trading.
Mr. Saluzzi initially exposed this activity to the public in late June. Irene views this trading activity as a natural evolution of modern technology.
Please let me know how you score “the fight.”
Additionally, for those interested in further pursuing information on structural issues in the marketplace related to high frequency trading, here is a link to my Review of Sense on Cents Interview with Joe Saluzzi on High Frequency Trading from last August.
LD
May 6, 2010 Trading Was Crony Capitalism!!
Posted by Larry Doyle on May 7th, 2010 9:27 AM |
While the market is working to digest the better than expected Unemployment Report this morning, put the pom-poms away please. No, I am not negative on the report, I am calling bulls%*# on a crony capitalist system that allows for so-called market exchanges to develop and function as they did yesterday.
Fat finger (meaning a trade size was incorrectly entered)? I do not buy it. I think yesterday was nothing more than so-called liquidity providers engaging in high frequency trading, and taking investors to the hoop in a HUGE way. How so? (more…)
Pump and Dump
Posted by Larry Doyle on May 6th, 2010 2:28 PM |
Has the price action over the last year been largely nothing more than one of Wall Street’s greatest scams? Which scam is that? The classic scam in the securities industry known as pump and dump. While this scam is typically relegated to penny stocks or thinly traded stocks, the fact is the basic principles have been utilized within our current market structures as well.
The coordinated actions amongst global governments, regulators, and accounting boards have allowed the system to disguise the fact that our global economies remain mired in excessive debt. Obviously, certain countries and companies are much less impacted by debt than others but largely speaking the global debt vs GDP ratio remains exceptionally high. This fact is not changing anytime soon. (more…)
Goldman Action Highlights FINRA Facade
Posted by Larry Doyle on May 6th, 2010 12:57 PM |
FINRA is supposed to be the Wall Street cop, right? Is the cop a real cop or more of a facade? Well, when the Wall Street banks which FINRA is charged to oversee do not observe the most basic of FINRA rules and regulations, in my opinion, FINRA is exposed as nothing more than a facade.
Evidence of this was on display just yesterday as Bloomberg highlighted in reporting, Goldman Sachs Said to Be Late to Report SEC Probe to FINRA:
Goldman Sachs Group Inc. was late in notifying the Financial Industry Regulatory Authority that trader Fabrice Tourre might be sued for fraud by the U.S. Securities and Exchange Commission, according to people familiar with the matter. (more…)
Is the Financial Crisis Inquiry Commission Providing Cover for FINRA?
Posted by Larry Doyle on May 6th, 2010 11:03 AM |
The Financial Crisis Inquiry Commission is charged with the following:
… a bipartisan commission that has been given a critical non-partisan mission — to examine the causes of the financial crisis that has gripped the country and to report our findings to the Congress, the President, and the American people.
So far, I would grade the Commission’s work as an F, as in failing . . . as in f@*%ing pathetic. Why so harsh? 
(more…)
