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Channel Checker Confirms On TV That All Wall Street Does Is Traffic In Borderline (And Often Blatant) Inside Information
Channel checking firm Broadband Research CEO John Kunnican was on CNBC earlier and summarized in a few simple sentences the whole topology of precisely how Wall Street works: "It's impossible to be an analyst on Wall Street unless you have an expert network. I know that my contacts at these private companies are having lunch on a regular basis with analysts from Jefferies and Morgan Stanley and Goldman Sachs and what not and I get forwarded the research reports from these banks, and frankly it's a little bit intimidating. I say- geez, i thought i had pretty good contacts but I can't compete." And there you have it - a quid pro quo world, in which inside information (in some case blatant such as when dealing with Phase 1,2,3 trials, or borderline, such as aggregating channel check launch data contemporaneously from all Apple stores) is bartered among the "informational arbitrage" elite on Wall Street, and in which the retail investor has zero chance of competing on a fair basis. And this does not even touch on any of the much more discussed "high barrier to entry" topics such as High Frequency Trading. If after all the disclosures on Zero Hedge over the past two years (which eventually tend to be picked up by the MSM no matter how crazy at first they sound) investors still believe they have a chance to make an honest dollar, when everything is stacked against them, even and especially the regulators, they sure have our blessings and condolences. As for John, good luck finding a new career. Hopefully the clients to whom you showed such exemplary allegiance will put you on their payroll for at least a few months. Furthermore, now that the expert network business model is finally in the open, expect ultra low margin Indian companies to outsource the rolodex offshore, where it is even less regulated, providing their consultants even greater commission, and putting all existing "expert networks" out of a job. That is, of course, unless the SEC, the FBI, or the DA do so first.
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Nice call on the fallout from this...
India... Hahaha...
Wishful call on the FBI or SEC doing anything at all...
Do you really wish for 1984?
You can have freedom of speech, or you can have laws that prevent people from trading on what they know and talking about what they know, and charging money for what they know, etc.
We we have a Totalitarian State, everyone who supported its incrementalism can cheer its arrival. Everyone else can wonder how "they" took control of "us".
You are asking for it, brothers!
There are two levels to everything of any value in this world. The inside level, where the select few are given inside information for fun and profit. And the street level, where that inside information is used against those on the street.
By it's very nature, there must be 100 or more on the street for everyone on the inside if real money is to be made by the insiders. Ever wonder why the Bible tells the masses to go forth and multiple? The Insiders need a steady stream of suckers.
"Ever wonder why the Bible tells the masses to go forth and multiple?" - Lol never though of this like that, I think the bible is
just a piece of paper but if they stuck to the Old Testament(took out the stonings) than it would be a pretty good book, it's all that Jesus crap that gives it a bad rap
Face Faber and the money midget from Neuberger whiffed on this one, thanks for the incisive conclusion TY.
Great stuff Tyler. ZH is a cut above when it comes to reporting the real and true financial news.
"... will put you on their payroll for at least a few months." - Yeah...good luck with that!
i don't need an expert to tell me that DIS is a short as long as kids are molested at airports.
Blue horseshoe loves blue star airlines.
Exit vistas are imminent..............
That settles it....I'm on my way to Tehran Iran for a Royal State visit with President Amindjawalidabalabbadada.
What with two U.S. and one French Aircraft Carriers sitting nearby, my prescence for Peace is a cinch.
No need to visit Ireland, Korea's, Bejing, Tokyo, Venezuala or even Sarajevo....the place to be is where the Hardware is.
hrh ADF
Insider trading has always been a part of the Street. Dotcom nonsense was a perfect example of this. Also, CNBC is the biggest perpetrator of insider tips. In the good old days, Cramer used to tell his fund to pump whatever stock he would come on the show to discuss, then dump it minutes later.
Worked like a charm. Actually still does. They bring these morons on and they pump and watch it tick up, then dump at the end of a segment. CNBC should be outlawed.
How's that 12:45 rally working for ya?
It's been moved to 4:45. :>)
Put a cork in it wanker.
+1 - i'm with the lady
Harry
What happened to the rally after the Ireland bailout news?
Harry, there was a research paper done at Kellogg on this very subject. As soon as it was published or about to be published, cramer's attorneys contacted the school to limit fallout and threaten defamation, etc. The paper got redacted/changed and the conclusions were more congenial with mr. cramer. It was my advice to publish it as originally written, but unfortunately it wasn't my call. Essentially, it was a historical study on stock prices before/after cramer recommends them. Needless to say, the statistics were not appreciated by mr. cramer and... ultimately, among other things, pointed to potential impropriety.
This won't be anything in the end. The clerk at Dick's says tells me it's slow ao I have inside info? The clerk at Dick's does time for sharing the info? The interpretations of Reg FD are too tight. Who needs a cyber attack? This type of interpretation could shut down all managed money.
Yeah, I saw this guy today. Hat tip, TD. You have him pegged. Like a baby with his blanky pulled away.
But I guess none of us should be surprised that the criminal syndicate known as Wall Street will fight for its right to rip off the American public continuously and forever. After all, these folk are "morality challenged." We should probably be empathetic if not at least patient with them.
fully agreed.
this guy's next job should be as a WalMart greeter, he'll have all the inside poop on where the best deals can be found that day. insider info, with real value.
Didn't Altucher say Insider trading should be legalized?
He sounds honest.
Insider trading should indeed be legal, counterparties caveat emptor. It's the illusion of a fair game promoted by the SEC and government that distorts the flow of cash.
It's nice to see this said in a post here, I've always maintained one has to be bat shit retarded to think a group of people in pretty NCY buildings have any clue about what actually happens inside US industry, and certifiably insane to believe this is any avenue for collective profit.
duplicate post deleted
Typical, the fraudsters don't view what they do as actually fraud. They live in a world where the rules are different than for the rest of us and think that is OK.
Just because this guy's report's are publicly available, doesn't mean it isn't a problem -- if certain folks get the info before it is publicly available, and based on access to info that is not SUPPOSED TO BE publicly available.
Shocker! The Ben Bernank "downwardly revises."
Who would have thought. Probably worth a rally.
Bullshit, having good information sources and integrating this info to succesfully allocate capital is exactly what professional investing should all be about. This is the least of the problems on Wallstreet, really, if it's a problem at all. This is nothing like the direct line to the central bank or the HF trades.
If a retailer wants to have information that good he should leave his computer and forget about his $200 newsletters and get out in the real world and build a network, offering value for value. In short, become a professional. Finally, a Wallstreet investor making money by having very good information does not preclude a retailer making money by having reasonably good information.
"Furthermore, now that the expert network business model is finally in the open, expect ultra low margin Indian companies to outsource the rolodex offshore, where it is even less regulated, providing their consultants even greater commission, and putting all existing "expert networks" out of a job. That is, of course, unless the SEC, the FBI, or the DA do so first."
Of course, that's what FREE TRADE is all about. Getting around sticky legal issues by separating the jurisdictions of where and how the business operates.
FREE TRADE at it's finest, which of course is, completely bullshit.
Who needs to worry about things like OSHA or Expert Networks dealing with insider trading when they can float it offshore, and these other countries either a) don't give a crap about it or b) Indian gov't has no say in insider trading crimes in the U.S.
Oh yes, free trade, love it or hate it, the impossible/idiot goal rules the roost.
Shouldn't take much longer for modern global capitalism to dissolve all the national borders unless something pretty dramatic happens. 20 years, maybe.
Just legalize "insider trading" already. It has and always been bullshit. Honestly what the fuck does "non-public" information mean? It just creates a two tier system of information.
Omg, someone on the other side of trade thinks they know something that you don't. Oh no! That's like totally not fair and stuff. News flash, bitchez: everyone thinks they know something you don't.
Insider trading laws just protect frauds from going public sooner.
The lesson in all this. Do not send you hard earned dollars to Wall Street. Buy property, rental units or physical gold. Start a business.
This guy nees a better lawyer. One that knows the following simple advice: "Keep your mouth shut."
You said it: MOUTH SHUT; Innocent or Guilty
He should have called his lawyer from the front porch as the Fed suits were walking up his lawn...
It's rigged! We was robbed!
Well John, you can strike Wellington off your client list.
BTW -- you can always count on the MSM to give us the breaking news after it is already common knowledge on main street.
They mention it now because they have to. They're complicit. Look at the major institutional shareholders of the parent media congloms.
You guys rooting this on are just supporting authortarianism.
Next up, you won't be able to trade on what you *think*
*think*, what's that?
where's my ipod...
TY - would zero hedge be considered an "expert network"?
yes, buy gold.
Adverse selection, yes?
I wouldn't be irritated by the Wall St. game if I could've gotten similar tax deductions for investment in anything other than fucking mutual funds through my workplace-provided 401Ks over the past few decades.
Once the Feds step into something, it's just a race between the thieves to see who gets to the trough first. I say sure, legalize crime on Wall St., and along with that, stop inducing the citizenry to provide the money to steal. 'Cause that's where the only crime is occurring. All the big players know everyone's a crook.
precisely.
if you had investment options, other than paper 'positions', for your 401K then most thinking people would redirect their wealth into more productive uses. The game is rigged, 401K's are all about a hand-out to the FIRE industries.
we need alternatives to the paper game, and until we get alternatives the fraud will continue. i've commented on alternatives to 401K's, there are a few but the price is high. I left the system and used mine to capitalize my company.
Yes they sure will outsource this to India. Also I have a strange feeling that this guy who outed the investigation may have a skeleton or too in his closet. I bet anything the advice he gave his clients was also used by him to shadow buys and sells and financial actions. Everybody thinks that the govt. doesn't have a case, but I disagree. For them to be doing this someone or group outed out this whole game and gave the feds information.