Boo-boo

High frequency trading has official gone mainstream. From the New York Times:

"It is the hot new thing on Wall Street, a way for a handful of traders to master the stock market, peek at investors’ orders and, critics say, even subtly manipulate share prices.
It is called high-frequency trading — and it is suddenly one of the most talked-about and mysterious forces in the markets.

Nearly everyone on Wall Street is wondering how hedge funds and large banks like Goldman Sachs are making so much money so soon after the financial system nearly collapsed. High-frequency trading is one answer."

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AIG

AIG is a scam. At least its stock price. They did a 20-1 reverse split lately and if we look to the chart of the last 18 months one can measure what the damage is. Even better: it’s already heading back down. Now the reason behind is selling is compelling: people feel better about selling at 9 USD than at 0.40 USD. Even though the value might be the same. And shorters love this move.

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Goldamn Sachs

The results of the trading activity for the NYSE were just published. No surprises here as we remember some very strange movements during last week. More than 33% of all buy and sell transactions was generated by program trading. and the leader of the pack is once more Goldman Sachs.

No, sir, they don't manipulate.

No, sir, just a coïnidence they work for their own account.

What's wrong, sir, with this kind of trading activity? Joe, the man of Main Street, you mean? You're naive, sir, because Wall street is there to part Joe from his money.

That is our job...

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