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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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Thu, 04/03/2014 - 15:51 | 4622371 Dr. Engali
Dr. Engali's picture

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

Thu, 04/03/2014 - 16:03 | 4622418 Hippocratic Oaf
Hippocratic Oaf's picture

Ask Robotradersmom

Thu, 04/03/2014 - 16:39 | 4622536 AssFire
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.

Thu, 04/03/2014 - 17:03 | 4622605 3.7.77
3.7.77's picture

Yea the Chinese solar dude, dang...

Thu, 04/03/2014 - 17:06 | 4622614 3.7.77
3.7.77's picture

Dupe.

Thu, 04/03/2014 - 18:06 | 4622881 Iam_Silverman
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?

Thu, 04/03/2014 - 18:45 | 4623040 AssFire
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

 

Thu, 04/03/2014 - 16:05 | 4622423 Smegley Wanxalot
Smegley Wanxalot's picture

Yeah, how does one draw an algorithm?

Thu, 04/03/2014 - 16:55 | 4622590 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

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

Thu, 04/03/2014 - 16:52 | 4622582 giggler321
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.

Thu, 04/03/2014 - 15:51 | 4622373 DavidC
DavidC's picture

Anybody know why the market just went mad?

DavidC

Thu, 04/03/2014 - 15:55 | 4622391 ArkansasAngie
ArkansasAngie's picture

it be that time of day

Thu, 04/03/2014 - 16:04 | 4622422 y3maxx
y3maxx's picture

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

Thu, 04/03/2014 - 16:06 | 4622431 Dr. Engali
Dr. Engali's picture

Folded? You mean set aflame don't you?

Thu, 04/03/2014 - 16:43 | 4622545 Major Major Major
Major Major Major's picture

Edit: I hope they fart

Thu, 04/03/2014 - 15:56 | 4622396 PlusTic
PlusTic's picture

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

Thu, 04/03/2014 - 15:56 | 4622399 Dr. Engali
Dr. Engali's picture

Robots.

Thu, 04/03/2014 - 16:05 | 4622426 Everybodys All ...
Everybodys All American's picture

Because it's rigged to go higher.

Thu, 04/03/2014 - 16:05 | 4622427 Sudden Debt
Sudden Debt's picture

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

Fri, 04/04/2014 - 00:29 | 4623916 813kml
813kml's picture

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

Thu, 04/03/2014 - 15:52 | 4622374 lasvegaspersona
lasvegaspersona's picture

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

Thu, 04/03/2014 - 17:05 | 4622596 Rainman
Rainman's picture

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

Thu, 04/03/2014 - 15:54 | 4622387 ZippyBananaPants
ZippyBananaPants's picture

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

Thu, 04/03/2014 - 15:59 | 4622395 ebworthen
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.

Thu, 04/03/2014 - 16:06 | 4622433 Uber Vandal
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.

 

Thu, 04/03/2014 - 16:24 | 4622500 NotApplicable
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.

Thu, 04/03/2014 - 17:54 | 4622810 disabledvet
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?

Thu, 04/03/2014 - 19:35 | 4623206 Uncle Remus
Uncle Remus's picture

smaller house.

Thu, 04/03/2014 - 18:32 | 4622995 Nobody For President
Nobody For President's picture

Hedge.

Thu, 04/03/2014 - 16:39 | 4622547 W74
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.

Thu, 04/03/2014 - 16:07 | 4622440 Smegley Wanxalot
Smegley Wanxalot's picture

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

All praise the MyRA Almighty!

Thu, 04/03/2014 - 18:11 | 4622916 ILLILLILLI
ILLILLILLI's picture

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

Thu, 04/03/2014 - 16:03 | 4622417 Sudden Debt
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 :)

Thu, 04/03/2014 - 16:07 | 4622434 Headbanger
Headbanger's picture

ALL YOUR DEVICE ARE BELONG TO US..

YOU HAVE NO CHANCE, MAKE YOUR TIME..

HA HA HA..

Thu, 04/03/2014 - 16:12 | 4622465 Sudden Debt
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 :)

Thu, 04/03/2014 - 16:37 | 4622525 Dre4dwolf
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.

Thu, 04/03/2014 - 18:58 | 4623080 css1971
css1971's picture

.

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

No.Just no.

Thu, 04/03/2014 - 16:05 | 4622428 Freddie
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.

Thu, 04/03/2014 - 16:53 | 4622541 ejmoosa
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.

Thu, 04/03/2014 - 16:54 | 4622589 crunchyfrog
crunchyfrog's picture

See it where?  Bet the story is a deliberate lie.

Thu, 04/03/2014 - 17:24 | 4622672 Rainman
Rainman's picture

Ode to Crimerica : Vote early and often

Thu, 04/03/2014 - 16:31 | 4622520 ManBearBull
ManBearBull's picture

I wonder what the next step will be.

Thu, 04/03/2014 - 16:36 | 4622530 ejmoosa
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.

Thu, 04/03/2014 - 16:46 | 4622568 Bernardo Gui
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?

Thu, 04/03/2014 - 17:46 | 4622763 Bazza McKenzie
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.

Thu, 04/03/2014 - 18:04 | 4622872 ejmoosa
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.

 

Thu, 04/03/2014 - 16:47 | 4622572 alangreedspank
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.

Thu, 04/03/2014 - 16:56 | 4622593 Babaloo
Babaloo's picture

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

Thu, 04/03/2014 - 17:02 | 4622601 NoWayJose
NoWayJose's picture

The nice thing about any map of evolution is that eventually it leads to extinction....

Thu, 04/03/2014 - 17:02 | 4622604 Tie-The-Tubes
Tie-The-Tubes's picture

They left out the next phase of the evolution...a big mushroom cloud.

Thu, 04/03/2014 - 17:31 | 4622697 grekko
grekko's picture

either that or pitchforks and torches.

Thu, 04/03/2014 - 17:20 | 4622659 Frank N. Beans
Frank N. Beans's picture

and....it's gone.

 

 

Thu, 04/03/2014 - 17:22 | 4622666 Goldilocks
Goldilocks's picture

The Simpsons - Homer Evolution
http://www.youtube.com/watch?v=faRlFsYmkeY (1:29)

Thu, 04/03/2014 - 17:23 | 4622670 Rising Sun
Rising Sun's picture

if that fucking cunt Yellen would stop printing, those HFTs wouldn't have much to say as the markets tank back to reality

 

so whadda ya say Janet?  feel like shutting down those printers?

 

right, thought so you miserable cunt!!!!!!!!!!!!!!!!

Thu, 04/03/2014 - 17:29 | 4622686 Sathington Willougby
Sathington Willougby's picture

HFT populism.  Boring loser talk.

Thu, 04/03/2014 - 17:45 | 4622765 geno-econ
geno-econ's picture

Why are regulators closing a blind eye to HFT ?
1) It keeps stock market buoyant, creates volume and increases asset
values
2). It creates employment in stagnant financial industry
3). It leads to software and communication equipment sales
4) It extracts investment money from savers, pension funds and hedge
funds In a low interest environment
5). It creates revenues for governments
6). It is compatable with Ponzi, debt/credit, speculative gangster greed
economy and therefore a Win-Win for all involved-------until the whole
system collapses

Thu, 04/03/2014 - 17:55 | 4622827 Cornholiovanderbilt
Cornholiovanderbilt's picture

DEvolution.  Fixed it!!!  Now time to get wasted!!

Thu, 04/03/2014 - 22:22 | 4623704 813kml
813kml's picture

From hookers and blow to tentacle porn and Red Bull.

Americans really have become pussies!!!

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