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Confirming The Flash Crash Omen, Submitted by Gordon T. Long of Tipping Points
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When is this market going to crash already?
It's too big to fail.
i wunder wut dey will talk aboot:
What are they talking about. It's totally about ping pong. They have a tournament, and the winner gets to decide which currency collapses first.
EDIT: BEER pong.
Bill Clinton likes to get the party going without having to have meaningless conversation and such.
duuuude they just want to see their friends. They just want to gossip about who slept with who last year. I mean, they are just like you and I. Except with nicer airplanes and yachts.
Henry Kissinger stretched as he woke up. The Spanish sun was shining through his drapes and illuminated his suite. "It iz a beautiful mornink." He said aloud to no one. "Maybe I will call ZBig." Zbig being a morning person was already at breakfast with the Queen of Whothefuckcares. "Chello?" "Zbig, what iz good?" "Havink a bloody mary vit the Queen of Fairylant? You just voke up didn't you!" "Yes, you know I am a night person!" "Yes I heard you did Koreoke until 4 last night! Did you do Welcome to the Jungle?" "No Herbert Walker got to it before me, I did Panama!" "Oh that is great! How about you join me for tennis today? I will be playing with Bernanke and Clinton." "I will be zer! See you then!"
I mean, you know, they are people too! What kind of agenda would they want anyway?
PS I heard they party real hard during the summer...somewhere in the Cali redwoods. They go there to "dull their care", whatever that means ;)
Weaving spiders, dull yourselves motha truckas!
http://www.youtube.com/watch?v=dT5LfRSJNyA&feature=related
Very good my friend! Very good! :)
Very droll! Only on Zero Hedge...this site rocks.
Awesome!!!!! :-)
Do you write satire for a living? You should.
Zbig! LOL! Great post.
Ever seen "The Aristocrats?" Sometimes the punchline is so much funnier when they drag the joke out waaaayyy too long.
It crashed; this is the dust settling. Yes there is a lot of dust. And yes the dust is toxic. Hold your breathe for your health. Also, yes it was a controlled demolition. Problem, reaction, solution. And yes, this has everything to do with peak oil...and peak gold...but mostly peak oil....and peak iron...but mainly peak oil....
Twin Towers:http://www.youtube.com/watch?v=Y9w4Wg1mYZ0&feature=related
Don't you understand that the market already has crashed? Just like our country the zombie walking around with the same name is not the same being, it just seems to be the same unless scrutinized. What is before you is not a "market" in any real sense of the word, it's a casino floating on algo arbitrage and multiple and running interventions.
see the difference between an actual report and some bullshit encylopedia britannica timeline?
See Fiait.com etc.
I'm glad you like this one better, thanks for visiting and contributing your thoughts.
Good day.
good day...and i completely agree with your thoughts above concerning the market...its as if we walk around in world that does not actually exist. reckoning will happen in due time.
Relax, amigos. What was the net result of the May 6th Flash Crash for your average 401K shlep or any responsible Pro Trader using Limit Orders near the market. PRECISELY NOTHING. Personally, I traded throughout the 25 minute crash and made money on the huge spreads and inefficiency. Give me a Flash Crash every day, baby.
If you flood the system with stops and go to the beach... you deserve to be carried out in a body bag. Darwin had a theory about organisms like you.
And this Dude writes an Armageddon Red Meat Catapult analyzing the Flash Crash from a high level perspective and has no solutions... so implies THERE ARE NO SOLUTIONS. Just buy gold and assume the fetal position. Horse feathers, baby.
The SEC needs to form a Commission with a dozen top Algo Engineers... and pay them accordingly. They are the only ones that can reverse engineer to solutions that will bring a reasonable level of stability.
The biggest problem is decentralization. The pendulum has swong too far. The markets MUST default to a central marketplace manned by pseudo-Specialists when curcuit breakers are triggered. Say the NYSE. Or build one. Take $1 billion from TARP and do it. The idea that there are no solutions is pure sophistry, baby.
"Personally, I traded throughout the 25 minute crash and made money on the huge spreads and inefficency. Give me a flash crash every day, baby."
"The idea that there are no solutions is pure sophistry, baby"
If you keep telling us how cool you are, and calling everybody "baby", we're going to begin to suspect you aren't the player you claim, rather a used car salesman snorting coke off the stomach of the ladyboy you just blew your entire months comission check on.
Double post.
yeah, remembering the South Park post awhile ago.
CNBC Broadcast: "Ummm, the market went to zero today. Nothing was traded. No volume. It just came up zero. ...... Why are you all still watching? You don't have anything of value in the market, so stop watching."
/realism OFF/
somewhat related...
http://www.youtube.com/watch?v=RAKsMnAM8vk
I like the South Park thing where the dad brings his son into put money in bank, and as every deposits the money, the teller looks at the screen and says, immediately after the deposit something like "And its[your money] gone" Too true.
I thought I heard today from multiple CEO's on CNBC that they all had hardware failures at exactly the same time. that was the cause of the flash crash :)
"Total Net US Borrowing" chart is sobering, I think the party may be over.
When genius fails...
.....then it's time to dream up fancy and confusing terms to replace the term " risk-based Ponzi ". Such as dynamic hedging, regulatory arbitage, subprime, bucket shops, etc.
The lack of a forthcoming explanation for the flash crash reminds me of those early failed auctions for "auction rate securities" that everybody ignored until they all failed.
pay no attention to what you see around you....
I remember in Schindlers List, how they asked people to clearly label their baggage as they were put on trains to camps, so people would stay calm and think at least they were keeping a few personal valuables to take with them to "work camp", and then, just out of view, the bags were immediately stripped of all valuables. When people talk about diversifying your protfolio, dollar-cost-averaging, average rate of return for retirement goals at 8 percen/yr etc...I feel like they are telling me to label my valuables before I get on the train.
+ 1 Mutt !!
yeah that was +11!!
Great analogy.
That's exactly how I feel right now w/ my 401k & IRAs... just waiting for Uncle Obama to snatch those 'bags' and throw them onto the bottomless boxcar that is the federal government debt express train to serfdom.
I think I just convinced myself to take the penalty and cash-out both my 401k and my IRAs and get MY money out of THEIR system. One more To-Do on the list for next week...
Wow. I feel 100% better already...
I cashed mine out. The last just a couple of weeks ago. Now this whole abortion is much more like watching a movie than riding a roller coaster while perched on a giant rubber dick.
Gold Bitchez!!
Precisely, right on mutt!
I've got 1.2158 $/EUR
I wonder when the night shift of the PPT will pump it back up...
Lets see? How many fiat currencies backed by gov dead head goon thin air promises has lasted longer than 40 years? Answer!! Up until now none! Aug of 2011 will be 40 years for the USD! I'd say it's gettin pretty hot in these goon skinned extend & pretend rhinos!!
I've got a lot riding on this market crashing by December 1. If it doesn't crash by them I promised my relatives that I'd eat my car & throw away my computer !
well, if your bets don't pay off, maybe you can make some money publicizing the car eating thing....Not that I wish you bad, but I hope you, and I, are wrong, if so....hopefully that means I still have a job and should have some money to throw your way just to say thanks for taking one on the chin for the whole global economy...
Nice piece, very cogently written, but I disagree with one core premise:
That techno-driven trading is to blame.
There were notable, devastating market crashes long before electronics, when The Big Board was a chalkboard and ticker tapes were considered high-end remote quote systems: Black Thursday and Tuesday, October 1929. March 13th, 1907. June 27th, 1893.
There are many paths that lead to a crash, often with eerily similar features. But at the core they all have one feature in common: sellers overwhelming buyers with a sense that the bottom is falling out.
I know, it sounds too simple, too unsophisticated, too primal. Beware whenever people start telling you that markets are dispassionate.
Actually, the big 1929 crashes had a lot of similarities with 1987 and recently. All are situations where there is "automatic" selling. Whether portfolio insurance, computer this-and-that or whatever. In 1929, it was margin. In those days, it was common for people to use 3:1 or even 10:1 margin on stocks. Of course this means forced selling on the way down. That's why we now have rules on margin.
Flash Meltdown = Something is desperately wrong, lets start a commission to get to the bottom of it.
Flash Meltup = Woohoo! It's a recovery! I'm Obama, these are my friends Ben&Tim, and we fixed it.
Larger View = Wow! Look at that boat violently rolling back and forth, it looks like it's about to capsize! Ooop. There it goes... bloop bloop bloop.
+1
Right On ... I filed a complaint with the CFTC for the 'manipulation' during May 6, not for the steep drop, but for the recovery that wiped out more of the active little guys than the push down. I believe that a fair and impartial investigation would show that the drop was engineered by the majors to add to their profits. Most had stopped 'buying' around ES 1144 ... but started 'buying' at 1060. I would love to see the daily profit stats from GS Accounting.
I encourage everyone who lost money on May 6, to file a complaint with the CFTC ... if enough complaints are filed, they might respond.
Point of interest...
On the most important stop of last week’s desperate mission to make the world safe for derivatives, US Treasury Secretary Geithner has been dealt a decisive rebuff. Geithner’s obvious attempt to sabotage the recent prohibition enacted by the German government against naked credit default swaps (among the most toxic of derivatives) was rejected in Berlin on Thursday by German Finance Minister Wolfgang Schäuble.
At their joint press conference, Geithner and Schäuble could hardly hide the atmosphere of tension and hostility, even though both were determined to mask the clash for domestic political reasons. A Handelsblatt blog pointed to the language of mutual dislike, and this newspaper headlined that the transatlantic conflict was escalating. The Washington Post published a photograph on Friday, May 28, 2010 showing the German minister scowling at the feckless featherweight Geithner. Geithner assured the journalists that there was a “broad agreement on regulatory reform,” but in reality there was no such common ground.
Schäuble has now emerged as the strongman in the German cabinet, due precisely to his willingness to take the point in the fight against derivatives. “Ban Bolsters Schäuble’s Sway,” headlined the Wall Street Journal. German officials are reported to be increasingly dismissive of the carping criticism coming from other countries which have failed to act against the world derivatives plague. The Germans know exactly what they are doing, Schäuble stressed: “We have done our national homework,” he added.
It is abundantly clear that Germany is determined to act unilaterally against speculation, especially in the form of derivatives. This means maintaining the current ban on naked credit default swaps, and supplementing this with a ban on naked short sales of German stocks, euro-denominated government bonds, and of the euro itself.
Geithner, as always, is operating behind a mask of duplicity. During the press conference, he did not directly address the German ban on naked credit default swaps which has caused such consternation in the City of London, Wall Street, the US Treasury, and the Federal Reserve, where derivatives are regarded as sacrosanct. Geithner also failed to address the question of a Tobin tax or securities sales tax on speculative financial turnover, which the German government is attempting to push through the ponderous elephantine Brussels bureaucracy of the European Union. Geithner also did not talk about the regulations largely targeting the Anglo-American hedge fund wolfpack which are also being developed in the Byzantine corridors of the eurogarchy.
These are matters of extremely serious strategic conflict. As the Washington Post noted on May 28, “… differences have emerged on the host of issues between the United States and Europe… some European officials – including Schäuble – want to tax all financial transactions for a fund that might be dedicated to crisis resolution or that might go into each government’s general account.” Given the increasing pressure on national budgets, it is of course imperative that the revenue generated by a Tobin tax be kept in-country to prevent the savage dismantling of the social safety net which is increasingly demanded by the financiers and their agents and dupes. Under no circumstances should these funds be kept in a fund which will inevitably be used for further bailouts of bankrupt zombie banks. As the Washington Post further commented: “Europe wants to more strictly clamp down on what it views as speculation, while … US officials speak more frequently about the risk of stifling innovation if regulations become too rigid.” Modern societies need innovation in the area of scientific discoveries that can lead to new technologies, and do not require any more variations of the available brands of derivatives cyanide, arsenic, and strychnine. The world has had enough of toxic derivatives to last us until the end of the century and beyond.
Geithner’s true intentions can be read from his systematic sabotage and gutting of the financial reform bill recently passed by the U.S. Senate. The most important feature of this bill was the ban on derivatives speculation by commercial banks proposed by Senator Blanche Lincoln of Arkansas. This would have partially restored the blanket ban on most types of derivatives which was in force under the New Deal from 1936 through 1982 thank to the Commodities Exchange Act signed by President Franklin D. Roosevelt. Geithner has attacked this provision, and is teaming up with Obama handler Rahm Emanuel to remove it during the upcoming House-Senate reconciliation process.
Geithner was also an active participant in the efforts to torpedo the McCain-Cantwell amendment, which would have restored the New Deal era Glass-Steagall law, which rigorously prevented commercial banks from engaging in stock jobbing and related forms of investment banking, including derivatives.
Geithner has also talked about stress tests for European banks. It should be recalled that the stress tests for US banks carried on last year under Geithner’s supervision were worse than useless, since they systematically excluded from consideration the main cause for bank insolvency in the current era – off-balance-sheet toxic derivatives. This blatant mockery should not be repeated in Europe.
As for the hedge fund hyenas, they are adamant about their intention to bring the crisis currently impacting the southern tier of the euro back home to the United States. In his New York Times article “Easy Money, Hard Truths,” David Einhorn, a leading hedge fund operator involved in the infamous February 8, 2010 Manhattan planning session for the current assault on Europe, is categorical in his forecast that the European crisis will happen here as well. To spare the American people endless and useless misery, it is imperative that we mobilize every legal and regulatory tool in the New Deal armory to put the hedge fund predators out of business while banning or taxing derivatives. The goal must be to prevent a needless national bankruptcy of this country and preserve the present constitutional system of representative government from the chaos and anarchy the speculators are eager to visit upon us.
GeoPol, I'm a huge fan, I've said it before and will say it again I'm sure. Thanks for posting. I'm not saying I always agree 100%, but I look forward to reading your material.
On this particular post, the only part I have a problem with is at the very end. I'm not sure there is a constitutional representative system still in place to preserve? On paper it's there, like the justice system, but if one scratches the surface one will find a Constitution used as toilet paper and corrupted parties and representatives that are representing only corporate and superwealthy interests to the detriment of those they're supposed to be representing left or right. In fact I'm for a total breakdown at this point. It would be a bad thing IMO if the criminals, traitors, and usurers aren't swinging from lightpoles at the end of all of this. A little, maybe a lot, of chaos and anarchy could be a good thing for this country. Long live the forest, let it burn.
'Occasionally the tree of Liberty must be watered with the blood of Patriots and Tyrants.' -Thomas Jefferson
Thanx CC
Does this dog and pony show even matter? I mean, other than WGT's Tobin tax idea, I do not see any other solutions, and even with a financial tax, I do not know if we can rebuild anything close to a respectable society for 7 billion people. We need an energy source, and the backside of oil production is on our doorstep. Gold peaked in the early '90's, and considering the role gold plays at banks, well, this is a big problem too.
Germany founded Scull and Bones, so are they not ushering in the terms of the NWO? Seems ironic that they have their heads above water before anyone else. I will give them some credit for swimming while others sink though.
Geithner is a nitwit, just wanted to add that......what is he trying to achieve? Other than self destruction of the world economy, I can not guess.
Einhorn is ready to cash in on America's demise; I do not trust him. Sharks eat and swim, that is all. Who is better, Hedge Funds or Bildeberg? Is there a difference, other than maybe for now Hedge Funds are more operable due to diligence. Also, Jim Tucker has got to read a book on peak oil, same with Jones. Them thinking that Bilderberg has unlimited power is going to do harm to the psyche of America. Peak oil is the key problem here, and no one controls it. Not the House of Saud, not the Bildebergers; no one. It is real, and with todays price actions vs. the dollar, it appears we may have a shock at the doorstep.
Thanks Geo for the intell!!!
great post brother geopol. As Max Keiser said the other day, we have witnessed in the Flash Crash the 1st undeniable act of financial terrorism. I believe there is a real rift between the 2 sides of the pond and things will be coming to a head in June with G20 & Bilderberg to decide whither the Euro and how to stop what are sure to be increasingly pissed off europeans from burning down a few landmarks.
I wonder whether the Euros or Wall Street has paid off the Chinese the most. Seems to me the fate of europe may lie with our friends in Bejing. My guess is that Camp Rockefellor et al have assured those in the palaces of the hyper rich Chinese elite that playing along with the City of London and GS, beats helping out the Germans, Spanish, Greeks etc. I agree with Nics post today that we could see a VERY stron DXY and seal the fate of the Germans etc in the short term.
The EZ will be forced to accept inflation as the only way to save the Euro which they must have to save the EU and maintain their path to a system of continental vs national governments. Next stop North American & South American Unions via the same incrimental steps used in the last 50 years in Europe, but speeded up for the NAU with threats of complete financial collapse, race wars etc etc etc. Never let a good [manufactured] crisis go to waste.
Thanx Brother!!!
Do not forget our friends, the Russians. Do not believe the U.S. propaganda. Whilst I can't speak about him personally nor his intentions in the former soviet republics, Putin is NOT on board with the Bildergberger NWO. Russia is a target (TPTB botched/semi-completeted the first attempt about twenty years ago).
I dunno. The enemy of your enemy is not necessarily your friend. Putin's not known for his love of free enterprise, free speech, or freedom in general.
.
This is as good an argument as I've seen for more stringent regulation. The lunatics are now running the madhouse (stock exchange).
Actually Einhorn was spot on in his comments on CNBC this morning regarding the worthless corrupt complicit rating agencies. He is shorting Moodys and S&P (McGraw Hill). If you don't have heggies and others calling BS when they see stupidity and corruption in the markets you have no checks and balances. That's just what Geithner and his ilk want.
So the flash crash happened because there is no liquidity? Fair enough. What the hell are the Majors going to do with all our tax money? Fuckers.
on Thu, 06/03/2010 - 16:43
#392760
I've got a lot riding on this market crashing by December 1. If it doesn't crash by them I promised my relatives that I'd eat my car & throw away my computer !
$$$$$$$$$$$$$
For one thing, stop telling your relatives anything about this. They will turn you in. Second, if the worst happens, restructure your debt like Dubai. Offer to throw away your car and eat your computer.
The “Flash Crash” of May 6, 2010 occurred on the same day the Depository Trust & Clearing Corporation "expanded its public release of data in the Trade Information Warehouse's global repository to include a breakout of outstanding credit default swap (CDS) contract values in their currencies of denomination"?
http://www.dtcc.com/news/press/releases/2010/index.php
The DTCC was created in 1999, is owned by its principal users financial institutions and settled more than US$1.48 quadrillion in securities transactions in 2009. It is the hub from which deals simple or complex, transparent or opaque, are cleared in 122 countries.
Does anyone feel there is a correlation between the two?
Thanks for bringing that out DTCC.
That is the big elephant in the room that no one can actually and know even less about.
Half the Stock swindle shenanigans happen at the DTCC. In fact, I'll look for it, the CEO of a very successful dot com era company decided to come out with the DTCC scandal, went around the US giving lectures on it..... be right back
Okay, just a bit on them.... but really a key player that swims deep...
Jonathan Beyman, chief of operations at Lehman, is a director of Depository Trust & Clearing Corporation. The DTCC is another hotbed of subversion and is widely recognized as facilitating the unlawful naked shorting of many companies, causing shareholders untold losses. According to www.investigatethesec.com/SG260905.htm ---
“It seems that every time the DTCC, which is also the target of numerous lawsuits brought by failed companies and a scorching expose in Investment Dealers Digest, gets under pressure, it begins striking out blindly in all directions. FinancialWire can often determine when the heat has been turned up because it is among the media, also thought to have included Dateline NBC, that begins to receive THREATS from the organization.”
The usual rat pack is represented at DTCC---JPMorganChase; Mellon Financial; Goldman Sachs; Merrill Lynch; Morgan Stanley; Credit Suisse First Boston; Citigroup; Bank of New York etc. Extensive commentary on the DTCC swindle includes www.rgm.com/articles/financialwire.html ---
“In comments to the U.S. Securities and Exchange Commission, C. Austin Burrell, who is providing litigation support and research for the law firms, said that StockGate is more massive than anyone may have imagined. "Illegal Naked Short Selling has stripped hundreds of billions, if not TRILLIONS, of dollars from American investors," and have resulted in over 7,000 public companies having been "shorted out of existence over the past six years." Burrell said some experts believe as much as $3.5 trillion to $4 trillion has been lost to this practice.”