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HFT King Getco To Make Sure GM IPO Does Not Crash, Will Be Designated Market Maker
The administration is doing everything it can to make sure that the worst IPO in history, that of Government Motors of course, will not be DOA. The latest news is that Getco has been appointed to be a DMM for the year's most important IPO. As Bloomberg reports: "The Chicago-based firm will be tasked with helping trading go smoothly when the auto maker returns to the New York Stock Exchange after a 16-month absence, expected to occur Thursday. NYSE Euronext (NYX) spokesman Christiaan Brakman confirmed that Getco was selected from among the exchange's five designated market makers, who are responsible for buying and selling shares, smoothing trade imbalances and providing liquidity in designated symbols in return for incentives paid by the exchange." Well, by now it should be all too clear what "providing liquidity means."
In other words, expect Getco to internalize and churn any sell interest and make sure that the stock can only go up, up, up, until enough of it is in retail hands at which point it can find its fair value, somewhere in the neighborhood of zero.
h/t London Dude Trader
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"The Chicago-based firm..."
All I needed to read.
You read my mind
+1
In the most literal and technical sense, this is called, "price fixing".
This used to be called stabilizing and the UWs were primarily responsible. Now somehow its Robot duty.
Steal the company from the senior bond holders.
Extinguish the debt, having given a massive chunk to the unsecured union(s).
Call it anything other than financial restructuring. (Oh, it's a miracle, lookie them cars.)
Do an IPO for the Gubamint. (Look, we saved the world and made money doin' it, no need for a free market.)
Turn the shares after pricing over what one fellow called a legalized Pump and Dump Scam and then letting the HFT's scalp/front run every last micro-cent out of the hides of the buyers and sellers
Mission Accomplished
It literally IS pump and dump.
I hope they stick all the shares in public employee pension funds
let them eat their own sh--t
anybody buying this trash should get a lifetime premium membership at Disneyland
naked shorts anyone?
tightening our collective belts for the good of the Homeland; and a little crack for the rustbelt to boot
when is this POS going to collapse for good?
Chicago is the definition of communism. Believe me.
http://www.youtube.com/watch?v=ibV8WJtNYJY
hunting me some squid, one tenacle at a time...
Pimpco should look to hire Getco for PCK and PCQ.......ASAP.
Wow - look at those charts. Any comment on what is going on? I dumped muni's 6 months or so ago - think there are some huge developments coming down the pike...
cali falling off into the pacific is all
Licking my chops, wishing I had long puts on those........
Somehow I suspect the Fed is going to own alot of GM when this IPO is done.
Or China ?
China, after all, will be essential to GM’s future. This year, for the first time ever, the American company will sell more vehicles in China than in the United States. It holds the No. 1 spot there, selling Buicks, Chevys and Cadillacs in the world’s largest—and fastest growing—auto market.
http://blogs.forbes.com/gordonchang/2010/11/15/china-wants-to-buy-a-stak...
You would think that front-running the GM IPO would be "priced in" right now and people would stop buying the supplier stocks.
But no, the mo-mo monkeys will gun this crap as high as they can to squeeze out that last bit up upside before the whole complex crashes.
yes..."going ape-poo..." now I understand what it means... Is it current AG Cuomo and Governor-elect who has declared a "Mr. Rattner" a "person of interest"? Something about "20 million" and "I ain't payin'!"?
Good comment Robot. TRW chart looks way overbought (but I am not a tech trader).
I would not invest in anything automotive (including parts suppliers), overcapacity. Especially GM. No gracias.
Has anyone noticed the GBP/USD and EUR/USD action. Tick for fucking tick sincronisation even though they trade at completely different handles.
Wow, designated-fluffer...there's a title to wear with pride.
It's apparent they think Four Loko when they're asked to provide liquidity.
That neighborhood is mighty big.
Even though you know it's coming, it's still laugh out loud funny when you read the actual words. Keep up the running stream of verbal bashing Tyler.
Wow!! An all out virtual delusional IPO. Who would of Thunk?? Where do i invest my delusional virtual money?
'nana 'nana horse shit
+10
Is there anything left that's mildly legit?
prostitution - possibly
And maybe distillers, but not much else.
Inaugural flash crash possible? :)
Prediction: There will be a big first day "pop" in the GM IPO, free money to all the White House's favored patrons having received allocations. Then it will dive as everyone dumps their shares.
Probably a few days of pops. Retail can't short an IPO before 3 trading days as per exchange rules, but dont think the big boys won't start picking up some short 'hedges' of GM.
Shorting GM, when possible, might be suicidal. At any point, in order to deflect criticism and manage the price, Treasury and/or unions could step in to buy, secretly using existing stakes as collateral.
Exactly. There are just so many stakeholders in a + price of GM shares (and the public has a short memory) that, IMO, this stock is not one that will go down easy.
They could use an historical example and rename the company American-Leyland. Call it a new company. Might sucker in some additional retail dollars.
'Try to get as much into retail hands as possible, where the worst-ever IPO can find its true value, somewhere around zero'.
Step right up and places ya bids, plenty of GM available for everyone, stuff granny's pension full of the crap, no need for pushing, line forms on the left...
Now, more than ever....
The "Synchronized Swimmers" (SPY, EUR/USD, Crude, Gold) must be cattleprodded to move in exact lockstep to the upside to assure a successful launch of the GM IPO.
But more importantly, the two "pairs" of critical importance are EUR/USD and AUD/USD....
Both must be in the highest of spirits....
Otherwise, all risk assets of every stripe and color will be drowned......
Wow, is that makeup waterproof? Are those twins? Did someone drop something in the pool?
http://www.youtube.com/watch?v=1PmMFaVzbzc&feature=related
Are those twins?
Close enough.
I'm sorry; did somebody say something?????
Funny how GM opened a $300 million dollar plant in Russia in November, 2008 but got a $25 billion dollar bailout. Funny huh?
According to GM-Brazil president Jaime Ardila in an interview with the Argentina Star and the Latin American Herald Tribune in Caracas, Venezuela late last year, General Motors plans to invest at least $1 billion of its bailout windfall from the federal United States government into the renovation of its assembly plant in Sao Paulo. In addition to the Sao Paulo renovations, GM will be investing another $250 million in an engine and small parts factory in Brazil. Also on tap is a new $600 million Chevrolet production plant in Rio Grande de Sul that will churn out 100,000 new Chevrolet automobiles. In addition, there will be another $500 million spent for an automobile components plant in Santa Catarina and $150 million for a body-parts plant in Sao Paulo. GM acknowledges that the several Brazilian automobile plants will cost $2.5 billion at a time when it is crying that it is about to file for bankruptcy.
The ANSWER is: somewhere in the neighborhood of zero......
QUESTIONS?:
how many GM vehicles will I buy in my lifetime?
How many quality vehicles does GM produce?
how many vehicles produced by the UAW will I buy in my lifetime?
What is the number on a scale of 0 to 100 that GM will NOT get itself into trouble again?
Besides UAW politics how many people can provide an answer as to why Chrysler would still be open?
What will be the percentage rate given by AmeriCredit on every new GM vehicle purchased from here to eternity?
What are the chances the "O" will NOT get whitewashed in 2012?
"What are the chances the "O" will NOT get whitewashed in 2012?"
Been thinking who the likely choices might be if not O'bama.
Democ-Rat: Hillary Clinton
Re-Public-Rat: Jeb Bush
We have seen this movie before... and it is sickening.
... or Bama, Palin ... where is my puke bucket?
CNBC has been pumping this turd of an IPO so hard its making me sick. They did this full expose about how all these retail investors wanted in to the IPO and were "outraged" that they would not be able to buy in as ma & pa investors.
The story was so phony, such obvious propaganda. There was no one who even questioned that the IPO would be a bad investment. They trotted out shill after shill to explain why they were going to be getting GM shares. One guy wanted to hold them for life and "leave them to his grandkids". Another guy said that the taxpayer money bailed out GM so it was only fair that the taxpayers "get to make some quick money from the IPO". Uh huh.
Highly disturbing. True government propaganda like you would see in a 3rd world dictatorship.
+10 I couldn't believe it. They were trying to make it appear that this was just like the tech bubble days. You get a piece of the IPO - guranteed money. What a phucking joke. I want my Netscape.
I'm amusing myself imagining a possible text message exchange between Timmay Gee over at Treasuray to his boss Barray Oh, should the IPO run into trouble despite the pulling out of all the stops:
TG: POTUS U THER?
BHO: POTUS HER. SUP, HOMES?
TG: BD NUZ, GM IPO DOA :(
BHO: WTF? R U KDING??
TG: NOT KDNG. MKT SEZ IPO = POS
BHO: WAT BOUT HFT PIMP?
TG: U MN PIMP R PUMP?
BHO: PUMP, SORY SPELING
TG: HFT CAUSE FLSH CRSH, HD 2 KBOSH HFT
BHO: GONA KL GTCO fTARDS FK FK FK!
TG: WAT 2 DO?
BHO: CN U BLAM FAT FNGR TRADE?
TG: HEL YA, LTS DO THAT
BHO: KOOL, POTUS OUT, LTR
TG: LTR, POTUS
Awesome. +1
S'all right, Zjohhny!
So let me get this straight. The government gave GM $30 Billion in bailouts to supposedly prevent bankruptcy, in exchange for a 60% ownership in the company. Then a few months later the government approves and fast-tracks a pseudo-bankruptcy that wipes out the unsecureds. And then not even a year later, a new GM IPO is announced. And then QE2 is announced, and just conveniently is arranged to begin the very week of the GM IPO. And now they are blatantly admitting that they have hired Getco to essentially price fix the IPO?
Where are the accusations of conflict-of-interest? Where are the accusations of insider trading by the government? This country is Fascist now, without a doubt.
Hey you dark, negative, sickos GM is a buy here. Easy money. People junked me for defending BP at $34 and now it's $40. Doomers didn't want to hear it when I said SP was going to 1200. Well GM will trade 10 to 20% higher after IPO. I'm buying it even if it is a piece of crap.
Apparently you are different then me b/c I sure as hell want a bigger upside than 10-20% on something that has the potential to blow up in my face. Juice ain't worth the squeeze imho.
The real question is, "where does Goldman start shorting it?" I'll give up a buck or two per share to get in front of them.
The real question is, "where does Goldman start shorting it?" I'll give up a buck or two per share to get in front of them.
The real question is, "where does Goldman start shorting it?" I'll give up a buck or two per share to get in front of them.
The real question is, "where does Goldman start shorting it?" I'll give up a buck or two per share to get in front of them.
Your exactly right, they are going to do everything to keep this stock going up and up and up especially on the first day. That is why regular people and even the regular buyers in the market can't get into this IPO, because if they did and had a good percentage they could short or sell or whatever and it could drag the stock down. By keeping this in the hands of a handful of market makers and such, they are assurd that some won't sell anytime soon and the ones with the fast computers will help along with the liquidity to push out any shorts or sellers in the market to make this go up and up and up. And then when people are able to buy the stock it will be at a very good ARTIFICAL HIGH. And as Tyler said, it will crash back down taking the retailers with it.
Our markets have become massive ponzi schemes.
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