The Evolution Of Wall Street (In One Cartoon)

Tyler Durden's picture

Wall Street has come a long way from Jesse Livermore's "money is made by sitting, not trading", "It takes time to make money", and "nobody can catch all the fluctuations." Now we have HFT "flash boys" who only make money 'trading', in milliseconds of time, capturing every fluctuation...

 

 

h/t @kalleldn of Penguin Press

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Dr. Engali's picture

Is that last guy Robotrader? I wondered what happened to him.

AssFire's picture

Who was that guy always pushing solar energy inverstents??

 Harold ?? Harry??- something like that

He was always getting slammed and vanished about the same time as Robotrader.

3.7.77's picture

Yea the Chinese solar dude, dang...

Iam_Silverman's picture

"Who was that guy always pushing solar energy inverstents??

 Harold ?? Harry??- something like that"

Leo Kovaklas?  Or something like that.  That seems familiar.  Wasn't he some big-shot fund manager for a Canadian retirement fund?

Speaking of such - what happened to some of the regulars from long ago?

Cheeky Bastard, Robot Trader, Orly (although he/she sometimes drops back in), Harry Wanger, and ol' Mister "it only costs $5 to mine silver"?  Where are they today?

AssFire's picture

Ha, here he is:

Leo Kolivakis's blog

RIP Aug 4, 2011

He must be up there near that sun he loved so much.

http://www.zerohedge.com/blog/5787

 

Smegley Wanxalot's picture

Yeah, how does one draw an algorithm?

MayIMommaDogFace2theBananaPatch's picture

Much more fundamentally important than the silly internet! </sarc>

giggler321's picture

>>Yeah, how does one draw an algorithm?

Maybe should ask the BTC guys since they've got to some how convince the populous with their magic numbers.

In picture the HFT guy looks more like Radar from Mash.

DavidC's picture

Anybody know why the market just went mad?

DavidC

y3maxx's picture

...The Cartoon is missing a copy of the "Constitution" folded nicely, sticking out of all their back pockets.

Dr. Engali's picture

Folded? You mean set aflame don't you?

PlusTic's picture

it's open...what else would it do?

Everybodys All American's picture

Because it's rigged to go higher.

Sudden Debt's picture

I turned off my HFT system to save money on the electricity bill

813kml's picture

You should've had it doing double-duty mining bitcoins.

lasvegaspersona's picture

come on..... Lloyd carries his own brief case?

Rainman's picture

He keeps a copy of the RICO Act with him at all times for easy reference.

ZippyBananaPants's picture

Looks like Lloyd is fanning a fart, crop dusting the other guys

ebworthen's picture

Funny.

Pretty sure most sheeple will still not understand their savings/pensions/IRA's-401K's are used as gambling chips.

All those hard earned paycheck contributions:  front run, fee'd, used as leverage, bet against, re-flated then crashed - while it "sits" on the green felt for Wall Street to play with.

Decades of legerdemain and skullduggery yet the hamsters stay on the wheel.

Generational theft yet the generations remain somnolent.

"Lions eating the antelope."

.gov does the herding.

Uber Vandal's picture

I am glad you mentioned the fee'd part.

I doubt anyone other than us on this site know anything about even if one "wins" with one's 401(k) or 403(b), there are a lot of fees that keep taking more and more bites out of the gains, and make the losses more severe.

Mutual funds are very good for that too.

Why pay someone to lose our money when I am perfectly good at doing so myself?

When I looked at some of the "options" in my wife's 403(b), I told her just contribute enough to get the match until that goes bye-bye, we will do the rest in a self directed IRA.

 

NotApplicable's picture

Match or no match, I wouldn't put any more money into this system only for it to be rehypotheticated, then leveraged against me.

Real assets are what make retirement possible. BennieBux, meanwhile, will only leave you hungry for more, like any starchy "meal."

Remember, TWO times ZERO purchasing power still equals ZERO.

disabledvet's picture

how else do I keep up with inflation?

the cost of heating the house just doubled last year...if I was long and strong gold, silver, copper, etc...none of which I have to buy for day to day expenses...indeed what one could argue is in fact an expense...I mean how do I survive here without being a hedge fund?

W74's picture

I'm in the same boat.  I match because even 50% "losses" are break even, and there's a good amount of upside overtime.

And yes, I totally understand the arguments against and for those who choose to not engage then I respect that decision too. 

All any man can do is what's best for himself and his own family.  Choose life accordingly.

Smegley Wanxalot's picture

For the rest of us, there's the MyRA.

All praise the MyRA Almighty!

ILLILLILLI's picture

Has a good beat, and you can dance to it...

Sudden Debt's picture

I just made my own petition :)

https://petitions.whitehouse.gov/petition/stop-mobile-suppliers-force-us...

STOP THE UPGRADES!

:)

come on guys, it's for the greater good :)

Headbanger's picture

ALL YOUR DEVICE ARE BELONG TO US..

YOU HAVE NO CHANCE, MAKE YOUR TIME..

HA HA HA..

Sudden Debt's picture

I was first thinking about "BRING BACK FAMILY GUY"
but...
I watch european channels so there's nothing in it for me :)

Dre4dwolf's picture

It's called modding and rooting your device.

Cell Phones with stock bloat ware are complete garbage........

Take my cell phone bill , I have unlimited data 300$ a month etc ... etc... yet without modding the phone I can't use jack shit on my phone.

 

They like to SELL you features on phones, but they then turn around and Lock you out of the features you pay for.

Sprint/verizon etc... they are all scam shell companies.

 

 

you pretty much have to break some kind of law just to get the advertised features you are paying for, it's not really a contract when your carrier breaks the contract/changes the terms of the contract every month.

 

All cell phone contracts are essentially null and voided every month by you carrier, people should really take the carriers to court, the carriers have no leg to stand on.

 

Its like we made contracts with a company to let us drive a hummer with four wheels around, then every month the company comes and starts removing features first they take out the radio, then they take a few wheels, till your pretty much left with a skeleton frame of a hummer.

 

Cell phone companies and other communications companies in general in the united states are the biggest scam industries.

css1971's picture

.

Cell phone companies and other communications companies in general in the united states are the biggest scam industries.

No.Just no.

Freddie's picture

Wall Street is totally rigged along with the entire financial system.  The USSA is a joke.  Look who is President - with the make believe elections.

ejmoosa's picture

Did you see how many voters in North Carolina alone had cast votes in more than one state?  I think the number was 42,000.

 

There are 50 states.  Think about that.  Think about which states had close outcomes.

 

We are being had every way we turn.

ManBearBull's picture

I wonder what the next step will be.

ejmoosa's picture

As I sit here listening to the book, and having seen so many comment that it's a narrower spread today than a decade ago, so what's the big deal, I can only say one thing.

 

Read the book yourself.  It's NOT about the spread.

Bernardo Gui's picture

Flash traders have a license to steal.  They see the buy and sell orders before anyone else and can execute trades ahead of everyone else.  They basically act as middlemen or scalpers by seeing what you want to buy and buying ahead of you just to turn around and sell it to you at a higher price.  It may be a fraction of a cent per share, but with millions of shares, high-speed computers and leverage, we are talking about real money.  It may not be technically illegal, but what purpose can it possibly serve the exchanges?  Who cares if it tightens the spreads or slightly decreases volatility.  How is any of that worth letting these guys in the front of the line?

Bazza McKenzie's picture

Exactly.  Which is why they don't provide any liquidity to the market.

They only buy from you when they know there is another real buyer in the market, at a higher price, who has not yet connected with you because of the normal time delays in the market, to which they (the HFT operator) are not subject.  If they can see there is no real buyer in the market then they will not buy from you.  So all they do is prevent you and a real buyer from meeting at the most mutually beneficial price.

This is unlike the traditional market maker who provided liquidity based on their judgment as to whether at some future time they would likely find a buyer at a profitable price, and who was therefore prepared to carry stock for some meaningful period.

ejmoosa's picture

Worse, it's stealing with the blessing of my very own broker's assistance.

 

So this is how it goes.

 

I place a market order to buy 10,000 shares of SWHC.

They see the order, buy 10,000 shares first, moving up the asking price, then sell the shares to me, at market.

They make money.

The broker gets paid for the order routing.

I get my pockets picked by just little enough to where they hope I do not notice, and come back often.

 

And that is why I will only place limit orders from now on.

Frankly, this is a fucking joke.

It's stealing pure and simple.

Even worse, we cannot be sure how weak these markets really are with the sheer amount of volume they are adding it.  Likely we are ALL overpaying for stocks ALL the time.

 

alangreedspank's picture

Bit of a misconception in the end. The actual programmer eventually might learn the strats as he tweaks them for the firm, but in the first place, he needs information skilled developers usually do not have and they have skills traders/brokers usually don't have either.

Babaloo's picture

Yo Tyler, where's the story on the MF Global customers getting all their money back?