Ben Bernanke Back Into The Populist Spotlight
Submitted by Tyler Durden on 07/10/2009 - 14:41It seems just yesterday that Ben Bernanke was rehearsing for the role of the Alzheimer's patient antagonist in Joel Schumacher's latest mad scientist-becomes-insane global dictator B-grade movie, before the House Committee on Oversight and Government Reform, after firing back with a catatonic "I don't recall" after catatonic "I don't recall" when asked to remember even one of the events in what historians will likely one day consider among the most critical 24 hours for modern capitalism. Many thought that this spectacle was merely a way for politicians to score populist points in a McCarthesque witch hunt sequel of the villain de jour play. It seems they were wrong.
Rogue Algorithms And Other Mutually Assured Destruction Program Trading Alternatives
Submitted by Tyler Durden on 07/10/2009 - 12:03It is now generally understood that high frequency traders (HFTs) are dominating the equity market, generating as much as 70% of the volume.
HFTs are computerized trading programs that make money two ways, in general. They offer bids in such a way so as to make tiny amounts of money from per share liquidity rebates provided by the exchanges. Or they make tiny per share long or short profits. While this might sound like small change, HFTs collectively execute billions of shares a day, making it an extremely profitable business.
Why should institutional or retail investors care? After all, aren’t HFTs adding liquidity? That’s what they and the exchanges, who court their business, say.
There’s a lot to worry about.
Quick look at US federal receipts
Submitted by Cornelius on 07/10/2009 - 08:09Individuals and companies went from paying roughly the same amount in income tax to a roughly 4:1 ratio estimated in 2014
Goldman Sachs Principal Transactions Update: 60% Decline
Submitted by Tyler Durden on 07/10/2009 - 07:32
The most recent, presumably correct, data has been released by the NYSE: Goldman total principal program trading has declined by 60% from 1,336 million shares in the prior week to 571 million in the current.
Bloomberg's Jonathan Weil On GoldmanGate
Submitted by Tyler Durden on 07/10/2009 - 05:03Jonathan Weil takes on Goldman's doomsday machine.
Marathon And SIFMA All Over Heads I Win, Tails You Lose
Submitted by Tyler Durden on 07/10/2009 - 04:30SIFMA's Tim Ryan runs like the plague from answering the question of whether he would invest in PPIP's garbage assets without the government's backstop. However, both he and Marathon's Bruce Richards are dying to use 14x riskless leverage in a wishful effort to restart securitization. David Faber: "Win win for you, no real downside, but you are ultimately going to be paying inflated prices for assets instead of true price discovery, what do you say to that." To which Bruce has a meandering explanation which concludes with: "Taxpayers do benefit, because we believe the returns on these assets are incredibly attractive."
Breaking News: http://www.xp-dev.com
Submitted by Tyler Durden on 07/10/2009 - 02:19Here it is: http://www.xp-dev.com/
Denninger Goes On Air, One Minute Twenty Seconds Of Airtime Ensues
Submitted by Tyler Durden on 07/10/2009 - 01:58Tonight Karl Denninger tried to have a sensible argument with CNBC, even dressed up for it. Unfortunately, it didn't work as expected (by Karl). The only topic covered was bloggers anonymity, on which issue Karl was surprisingly goaded into agreeing with the amusing and lovable host. Karl, and host, we have pointed out before why certain entities prefer to remain anonymous: I would refer both of you to one version of the explanation here. As for Karl trying to debunk what passes for analysis at CNBC, that did not quite work out either. Maybe finally bloggers will realize that a sensible conversation can not occur within the confines of GE's subsidiary. Ever. Probably would be more realistic to discuss exchange server latency at a Goldman sponsored program trading conference with Sergey Aleynikov as keynote speaker and Misha Malyshev and Kevin Mitnick as moderators.
Radio Zero: Does Your Firm Do Theft of Trade Secrets Defense?
Submitted by Marla Singer on 07/09/2009 - 18:52Thursday isn't Friday, unless you spent the week in Federal Holding and you need to let off some steam before you head to the slamy-slam-slam.
Hence, tonight, starting 9:00 Eastern, Radio Zero will spin just for you. Slots are limited. Check back for the URL 15 minutes prior.
Update: http://s4.viastreaming.net:7760/listen.pls for your Radio Zero fix.
Live Tracklist: http://twitter.com/marlasingerzh
Requests: AIM marla@zerohedge.com
Zero Hedge Contributors
Submitted by Marla Singer on 07/09/2009 - 16:44"Wow, there are more of you?"
Electronic Mail Warning
Submitted by Marla Singer on 07/09/2009 - 15:52Better make sure your email is correct, people.
The New Compliance World Order: Is Big Brother Dictating IT Policy Now?
Submitted by Marla Singer on 07/09/2009 - 14:53Short answer: "Looks like it." But the deeper question is: Why?
Citadel Joins The Program Trading Industrial Espionage Fray, Sues Malyshev And Teza
Submitted by Tyler Durden on 07/09/2009 - 14:21The gloves are now completely off in the escalating program trading fiasco that was started by Goldman's former Sergey Aleynikov. Oddly, while Zero Hedge was fully expecting the Teza injunction to come from Goldman, it seems Griffin was more than happy to burden himself with that task. Hopefully Citadel is not faced with a case of reverse discovery and forced to document the 40% returns that it generated compliments of Malyshev when all its other groups on average lost around 50% in 2008.
30 Year Auction A Dud
Submitted by Tyler Durden on 07/09/2009 - 14:05Results of USD 11bln (Act) 30y note auction
- Yields 4.303% vs. Exp. 4.292%
- B/c 2.36 vs. Avg. 2.54 (Prev. 2.68)
- Indirects 50.2% vs. Avg. 47.73% (Prev. 49.09%)
- Allotted at high 67.88%
Live Webcast On Fed Independence
Submitted by Tyler Durden on 07/09/2009 - 13:14House Committee On Financial Services hearing on Regulatory Restructuring: Balancing the Independence of the Federal Reserve in Monetary Policy with Systemic Risk Regulation.
Here is the link with all the prepared testimony.
