RSS Feed
Twitter
Facebook
Email
HomeFrom 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…)
Jimmy Cayne: A Man of Very Few Words
Posted by Larry Doyle on May 5th, 2010 2:05 PM |
Jimmy Cayne, Former CEO of Bear Stearns
I am currently watching the Financial Crisis Inquiry Commission’s questioning of former Bear Stearns executives Jimmy Cayne and Alan Schwartz. In their opening statements, both Cayne and Schwartz deflected their managerial responsibilities as reasons for the firm’s demise.
Although I have long held out Jimmy Cayne as an exceptionally arrogant and greedy individual, his current performance evokes a range of emotions on my part. On one hand, I see Cayne as somewhat disinterested. On the other hand, I actually feel a tad sympathetic for Jimmy Cayne as he comes across as a frail, almost broken man. His abbreviated answers connote a lack of full understanding and control of the issues.
FCIC Should Ask Bear Stearns Execs About EMC Mortgage
Posted by Larry Doyle on May 5th, 2010 12:04 PM |
Will America ever truly learn the full extent of fraudulently underwritten mortgages that lie at the foundation of our overall economic crisis?
Aside from a less than fully transparent hearing with executives from Washington Mutual, the Financial Crisis Inquiry Commission (FCIC) has not drilled down to fully expose the fraud within these mortgages. Former bank regulator William K. Black recently highlighted the pervasive nature of this fraud in an interview with Bill Moyers.
Why doesn’t the FCIC dig deeper to reveal which firms were involved with this activity? (more…)
Eli Broad on Education: “The American Public Doesn’t Get It”
Posted by Larry Doyle on May 4th, 2010 2:36 PM |
I feel strongly that the very future of our country is directly tied to the quality of our secondary schools. How are we doing? Not very well. The United States has plummeted in terms of educational rankings over the last few decades.
While I have written on this topic periodically, let’s listen to a Bloomberg interview with Eli Broad on U. S. Education. Eli Broad and his wife Edythe are renowned philanthropists. The Broad Foundation does tremendous work. During this brief interview, Broad hits hard on the issues of families, educational management, and the fact that America has become “fat, dumb, happy.”
The truth may hurt, but if our nation wants to make progress we had better face the truth head on. I thank Eli Broad for speaking so bluntly on one of the most important topics impacting our future well being. – LD
Click on the image and then wait a few seconds for the video to load:
