The "Deplorables" - Who We Are And What We Want

If you really want to know who we “deplorables” are it’s rather simple - we are the ones who refuse to participate in the operation of the machine. We are the cogs who refuse to cooperate. We will not grease the gears. We will not stoke the furnace. We will stop the whole damn thing in it’s tracks, because, for the sake of future generations, we must.

The SEC's Former Top "HFT Expert" Joins HFT Titan Citadel

April 2015, Zero Hedge: "Gregg Berman will find a hospitable and well-paid position after spending 6 years defending the well-paying HFTs lobby. In all likelihood Berman will join the NY Fed's shadow trading desk and the world's most leveraged hedge fund, Citadel itself."
September 2016, WSJ: "Gregg Berman joins Citaldel."

IEX Set To Revolutionize Gold Trading With Blockchain-Based Exchange

The IEX Group, which shocked market participants on August 19 when it became the first official exchange to offer a mechanism to bypass HFT predatory algos and frontrunning against all odds, including vocal complaints by established players like Nasdaq and Citadel, now seeks to revolutionize the more than $5 trillion-a-year gold market with a new exchange being created by its spinoff TradeWind Markets, Reuters reports.

"No Reason" Why ECB Shouldn't Buy Stocks: Peterson Institute

"I don’t see a reason [for the ECB not to buy stocks]" said Joseph Gagnon, senior fellow at the Peterson Institute for International Economics. "It isn’t obvious to me why a central bank wouldn’t always want a diversified portfolio, including equities."

Norway's Largest Bank Is Going Long VIX For The First Time: "We See Much More That Can Drag The Market Down"

“We see much more that can drag the market down than we see positive surprises. We can’t see where they could come from. It’s not yet like 1999 as far as valuation goes, but there are indications of a bubble. Now we’ve emptied the six shooter in all areas - the rate is zero, a lot of QE, pricing is up and growth is the same - it’s more challenging now.”

CLSA: "The Bank Of Japan Has Nationalized The Japanese Stock Market"

The Bank of Japan's near doubling of its purchases of Tokyo shares is causing investors to worry the central bank will dominate financial markets, which could lead to price distortions as it continues to grease the economy. It also prompted a CLSA analyst to tell the truth: "The BOJ is nationalizing the stock market."

"This Ain't Rocket Science Folks" - Fundamentals Matter (And Will Always Matter)

We can pretend fundamentals don’t matter and sure in the day to day profit taking of Citadel and the like they really don’t matter. But, while the PhDs may talk big about this new world economy where a move to universal welfare means jobs and wages don’t matter - well that is nonsense. Jobs and wages matter and they will always matter.

Frontrunning: July 21

  • Global stocks nurse nine-month highs before ECB meeting (Reuters)
  • Kuroda Says No Need and No Possibility for Helicopter Money (BBG)
  • As Republican Party tries to heal wounds, discord rules at convention (Reuters)
  • GOP Divided as Cruz Snubs Trump (WSJ)
  • Trump Chooses War With Cruz at Convention Aimed at Unification (BBG)

Spoofing Trader Who Outsmarted Citadel And HFTs Gets 3-Year Jail Sentence

Michael Coscia, the first person convicted of spoofing after it was made a crime under the Dodd-Frank Act, was sentenced to three years in prison by a federal judge in Chicago. His real crime? Taking on the HFTs, and Citadel, and winning. Now he gets to spend 3 years in prison thinking about it. And let that be a lesson to anyone else out there who dares to do the same.

Here Is What Ben Bernanke Told The Bank Of Japan

Despite Bernanke's insistence to keep his mouth shut about what transpired during his historic meeting, the answer leaked out anyway: Koichi Hamada, a close adviser of the prime minister, said Mr. Bernanke may have discussed helicopter money with Japanese officials he met with during his visit, including BOJ Gov. Haruhiko Kuroda and Ministry of Finance policy makers.

"Something Big" Indeed Came - Bernanke's Japan Visit Unveils "Helicopter Money", Sparks Monster Rally

When we first heard this past Thursday that private blogger and Citadel employee Ben Bernanke was going to "secretly" meet with both the BOJ's Haruhiko Kuroda and Japan PM Abe, we warned readers that "something big was coming." Two trading days later, with the USDJPY higher by 200 pips and soaring after something big indeed came overnight from Japan: nothing less than the first "lite" instance of helicopter money .