• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

The Feds Are Now Investigating The High Freaks For Quote Stuffing

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Sat, 04/30/2011 - 08:10 | 1223586 FOC 1183
FOC 1183's picture

I forget, what's fundamental analysis again?

Sat, 04/30/2011 - 08:15 | 1223589 Tyler Durden
Tyler Durden's picture

It's what happens when the post-money valuation of heatmap.com is under $100 billion

Sat, 04/30/2011 - 09:56 | 1223726 Texas Gunslinger
Texas Gunslinger's picture

Excuse me Sir...

Can you please tell me what "HFT Quote Stuffing" is?


Ok?  I will report again next week, so we can measure the changes week to week. 

Thank you in advance, and God bless us all. 


Sat, 04/30/2011 - 11:04 | 1223899 EscapeKey
EscapeKey's picture

Jeez, and I gave you the benefit of the doubt...

I can report that a 2004 Rioja Gran Reserva went from £5.99 to £7.99 in one week alone!!! That's over 300,000,000% inflation annualized!!!!eleventyone11

Seriously, lurk more.


Sat, 04/30/2011 - 11:13 | 1223918 piceridu
piceridu's picture


Sat, 04/30/2011 - 13:32 | 1224139 Canucklehead
Canucklehead's picture

Texas, you've run out of mulligans.  It's clear you are not as you present yourself.

Sat, 04/30/2011 - 22:34 | 1224828 StychoKiller
StychoKiller's picture

"Son, fat drunk, and stupid is no way to go through life!" -- Dean Wormer, "Animal House"

This person is probably under 21.

Sat, 04/30/2011 - 23:09 | 1224876 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

TG eating dog food while millions of dogs have none is evil.


Sat, 04/30/2011 - 08:18 | 1223592 Boilermaker
Boilermaker's picture

Yea, right, they are going to 'investigate' why the market has doubled from the lows and goes up perpetually.

So, they are going to investigate themselves?

Sat, 04/30/2011 - 08:27 | 1223601 Mike2756
Mike2756's picture

A few kickbacks and fines, we promise not to do it nomo'.

Sat, 04/30/2011 - 08:41 | 1223621 Ray1968
Ray1968's picture

I expect them to investigate themselves right about the same time that the ES margin requirements are raised: NEVER.

Sat, 04/30/2011 - 09:12 | 1223655 disabledvet
disabledvet's picture

"call it a people's revolution."

Sat, 04/30/2011 - 14:52 | 1224277 Oracle of Kypseli
Oracle of Kypseli's picture

When I see 2 or more big fish behind bars, then and only then, I am going to start believing. 

Sat, 04/30/2011 - 22:35 | 1224830 StychoKiller
StychoKiller's picture

Waddell & Reed star in the re-make of "Stir-Crazy!", along with a large supporting cast of HFT Robots!

Sat, 04/30/2011 - 08:22 | 1223593 Badabing
Badabing's picture

The SEC and Commodity Futures Trading Commission sharpened their focus on porno

Sat, 04/30/2011 - 13:17 | 1224114 Id fight Gandhi
Id fight Gandhi's picture

They are the masters of ghost loads.

Nothing will "come" of this.

Sat, 04/30/2011 - 08:23 | 1223596 Cognitive Dissonance
Cognitive Dissonance's picture

A 1000 days late and $10 Trillion dollars short.

Sat, 04/30/2011 - 08:36 | 1223613 augie
augie's picture

well i mean, you have to adjust for inflation Cog... give them SOME credit. Shesh.

Sat, 04/30/2011 - 22:37 | 1224832 StychoKiller
StychoKiller's picture

NO! No mo' credit!  You pay now...you pay cash (preferably Silver Eagles!)

Sat, 04/30/2011 - 09:13 | 1223657 disabledvet
disabledvet's picture

you mean "the government is out of money" not Wall Street?

Sat, 04/30/2011 - 09:26 | 1223682 EscapeKey
EscapeKey's picture

More importantly, though, how will this be resolved?

a) $10m fine, a promise never to do it again, and watered down regulation.

b) Retroactive change in regulation, which allows quote stuffing if you're a "market maker".

c) Completely ignored.

Sat, 04/30/2011 - 08:29 | 1223600 Oh regional Indian
Oh regional Indian's picture

I think they should be called FHT, Frequently "High" Traders.

That would "crack" this one right open, if you get me drift.



Sat, 04/30/2011 - 08:38 | 1223614 snowball777
snowball777's picture

These Freqs are Here to Partay...


Sat, 04/30/2011 - 08:28 | 1223602 boooyaaaah
boooyaaaah's picture




As the authors of the report for the Defense Department’s irregular warfare unit conclude, there is no question that short-side market manipulators contributed to the collapse or near-collapse of many of America’s largest financial institutions in 2008. The report states further that “the [short selling] attacks on [America’s biggest banks] were so brazen that it is difficult to imagine that they were uncoordinated.”

And it wasn’t just the banks that were attacked. The SEC’s partial data shows that there was also massive naked short selling of exchange traded funds, or ETFs. These are publicly listed funds that are often highly leveraged and typically trade a basket of multiple stocks across a given industry. When market manipulators attack an ETF, they inflict damage on the entire industry that the fund indexes  – and the high leverage magnifies the impact.

Meanwhile, there is strong evidence that the markets for U.S. government debt have also come under attack. The first naked short selling assault on U.S. Treasuries was launched in September 2001, at the time of Al Qaeda’s attacks on the World Trade Center and the Pentagon.  In the months and weeks before the 9-11 tragedy, a daily average of $1.5 billion worth of U.S. government bonds failed to deliver. On the days immediately before 9-11, the daily failures to deliver soared to an astounding average of $1.5 trillion and continued to rise in the days after the attacks.

This was new and unusual market manipulation on a Herculean scale, but it was even worse during the months leading up to and following the 2008 crisis, when an average of $2.5 trillion worth of U.S. Treasuries failed to deliver every day.  The authors of the report for the Defense Department speculate that financial terrorists, having precipitated the financial crisis, might have intended to attack the government bond markets in an attempt to bankrupt the national treasury

Sat, 04/30/2011 - 08:46 | 1223624 Dejean Splicer
Dejean Splicer's picture

What a great laugh for the morning. Blame the whole thing on Al Qaeda.

Brilliant and long overdue.

Sat, 04/30/2011 - 10:01 | 1223740 DeadFred
DeadFred's picture

And done with typical Al Qaeda efficiency.  The people who gave you the "light with a match" shoebomb try to bankrupt the treasury when they just wait three years and we do it ourselves?  No, it would take deeper pockets than Al Qaeda has to do this.  China on the other hand...

Sat, 04/30/2011 - 08:45 | 1223628 Chuck Walla
Chuck Walla's picture

Ten years later, we did it for them. Just doing the job that non-Americans can't do....

Sat, 04/30/2011 - 09:18 | 1223659 disabledvet
disabledvet's picture

So is there no Silver in SLV?  Or no silver in Comex?  Can't have it both ways, can they?

Sat, 04/30/2011 - 09:42 | 1223700 cossack55
cossack55's picture

Why not? They write the rules, they can have it any way they want it.

Sat, 04/30/2011 - 08:30 | 1223603 Lord Welligton
Lord Welligton's picture

I won't hold my breath.

Sat, 04/30/2011 - 08:31 | 1223606 Careless Whisper
Careless Whisper's picture

Justice Dept. + SEC = yawn.   Why isn't the FBI involved in this investigation?


Sat, 04/30/2011 - 08:47 | 1223627 augie
augie's picture

I was going to try to make another wise ass comment but the bureau needs no help from my non-degree-having plebian self.




If you want a quick laugh:

Our Core Values

  • Rigorous obedience to the Constitution of the United States;
  • Respect for the dignity of all those we protect;
  • Compassion;
  • Fairness;
  • Uncompromising personal integrity and institutional integrity;
  • Accountability by accepting responsibility for our actions and decisions and the consequences of our actions and decisions; and
  • Leadership, both personal and professional.
Sat, 04/30/2011 - 09:30 | 1223687 spelledwrong
spelledwrong's picture

I guess the first bullet means that the FBI is on thier own watch list?

Sat, 04/30/2011 - 09:43 | 1223703 cossack55
cossack55's picture

I hit the link and was shot to The Onion. Good one.

Sat, 04/30/2011 - 15:01 | 1224293 Oracle of Kypseli
Oracle of Kypseli's picture

American hegemony made Americans complacent and the enemies both external and internal are striking back while the Sheeple are either on chemical stimulants or watching the boob tube. (Roman Empire anyone?)

Sat, 04/30/2011 - 08:32 | 1223607 Dejean Splicer
Dejean Splicer's picture

Magnificent actors with words and motions that almost breach the barrier of action.

The regulators are once again proving their worth to their masters.

Sat, 04/30/2011 - 08:45 | 1223632 snowball777
snowball777's picture


Shocked, shocked I tell you, to learn that there have been bogus quotes by the trillion flooding our exchanges.

Sat, 04/30/2011 - 08:41 | 1223615 Rogerwilco
Rogerwilco's picture

C'mon ZH it's "high freq", not "high freak", even if the latter is more descriptive.

Sat, 04/30/2011 - 08:52 | 1223639 Tyler Durden
Tyler Durden's picture

Actually, no.

Sat, 04/30/2011 - 15:05 | 1224302 Oracle of Kypseli
Oracle of Kypseli's picture

Humor is great, but we need to do our share to strike back.


  • withdraw all money from big banks
  • sell all stocks and mutual funds
  • buy physical gold and silver
  • spread the word

Any more suggestions?

Sat, 04/30/2011 - 18:25 | 1224541 malusDiaz
malusDiaz's picture

Done Done Done Done 6-12 months of dried food goods : rice, beans , flour, sugar, salt,.... Don't forget popcorn & coconut oil ( self preservative) for the show

Sat, 04/30/2011 - 22:12 | 1224807 razorthin
razorthin's picture

LOL for the first time.  Awesome.

Sat, 04/30/2011 - 08:39 | 1223616 101 years and c...
101 years and counting's picture

without HFT, volume would drop 80% and the market would just die a quiet death as 80% of americans couldnt give a rat's ass.

Sat, 04/30/2011 - 22:41 | 1224839 StychoKiller
StychoKiller's picture

You type that like it's a bad thing...

Sat, 04/30/2011 - 08:44 | 1223622 Dan The Man
Dan The Man's picture


can you maintain price without volume?


Sat, 04/30/2011 - 09:17 | 1223665 disabledvet
disabledvet's picture

go ahead and short it.  the government won't stop you.

Sat, 04/30/2011 - 08:55 | 1223643 SwingForce
SwingForce's picture

Did you guys know that a submarine costs $1,200,000,000 these days?


Sat, 04/30/2011 - 09:11 | 1223654 snowball777
snowball777's picture

But you'll never need to buy diesel.


Sat, 04/30/2011 - 15:10 | 1224305 Oracle of Kypseli
Oracle of Kypseli's picture

Bernanke and Geithner can pay digitally in as many seconds as you pay your cable bill online. What's the problem here?

Do NOT follow this link or you will be banned from the site!