Disgusting Culture of Conspiracists

[Core Imposter]

Yes, many conspiracies are in broad daylight. Which means they aren't really conspiracies, but they are so complex, nobody can figure them out, and even if they can, trying to explain it to the populace would be impossible. It is hide in plain sight.

CDS and CDO's were almost above my head, and I don't even know much about what LIBOR was about... ...but I do know the stock market game is rigged.

Based on what I've read, starting around 2000 a new wave of mathematical "nerds" nicknamed "quants" short for qualitative analysis, began to secretly infiltrate the markets unbeknownst to the trading lords. Using massive computer power and sophisticated algorithms, they were able to discern mispricings in the market in mere fractions of seconds and execute lightning quick, hedged trades for minute but foolproof profits.

Located in secret well off the Street and raiding via the internet, these operations grew by steadily and stealthily increasing the their volume of pinprick raids, leverage their power by investing in ever more computing power and fiber optics to ratchet up speed levels to incredible lenghts, leaving the trading masters of the universe dazed and disoriented.

Indeed, much of this was not known widely known by the public until 2009. By now, more than two thirds of the existing trading volume is computer driven and the most amazing thing is the entire operation has nothing to do with traditional knowledge of stock value trading. Its all based on exploiting tiny, timing weaknesses of the system. Computers are simply faster than humans can ever be.

Of course, there were both intended and unintended consquences. These conspirators have seized control of the markets but also have produced the series of terrifying flash crashes.

And it leaves you to wonder what else has changed in the world that we are unaware of, and might not learn about for years.

You've right, the stock market game is rigged, but sometimes the riggers are actually the marks. Dog eat dog.

Edit: I've read that the early roots of this sprang from the pioneers of the pratice of card counting to beat casino blackjack games.

 

[Neomega]

flash crashes.

I only know of one flash crash, but....

"fat finger"

I believe that one.

 

[Kaitzilla]

I only know of one flash crash, but....

"fat finger"

I believe that one.

Only one flash crash? There have been thousands...

http://www.zerohedge.com/news/2012-10-21/stock-market-fragility-fast-approaching-flash-crash-levels

Google "canceled trades" which is what the usual prescription when the market robots go wild. It happens more and more often lately.

 

[Kaitzilla]

The single largest infiltration of the US government in history that you never heard about.


Operation Snow White:
http://en.wikipedia.org/wiki/Operation_Snow_White

 

[TomYo689]

It still counts as a flash crash if no one notices (virtually non existant)? I sure haven't seen any.

 

[Core Imposter]

The single largest infiltration of the US government in history that you never heard about.


Operation Snow White:
http://en.wikipedia.org/wiki/Operation_Snow_White

That tickled some long dormant brain cells. I had totally forgotten it, and never knew any of the details.

Goodness sakes.

 

[Core Imposter]

RFK Jr.: Evidence ‘Very Convincing’ Lone Gunman Did Not Kill JFK

January 12, 2013 12:50 PM

He said his father had investigators do research into the assassination and found that phone records of Oswald and nightclub owner Jack Ruby, who killed Oswald two days after the president’s assassination, “were like an inventory” of mafia leaders the government had been investigating.

http://washington.cbslocal.com/2013...very-convincing-lone-gunman-did-not-kill-jfk/

 

[Kaitzilla]

It still counts as a flash crash if no one notices (virtually non existant)? I sure haven't seen any.

Good heavens! They happen multiple times everyday. I guess the public only notices when the entire market of stocks does it at the same time and the DOW drops 1000 points in 1 second that it gets attention.

http://www.advancedtrading.com/mini-flash-crashes-continue-to-fly-under/240142346

I love how the article starts out with

For no particular reason, events known as mini-flash crashes routinely happen in equities...

Bwhwahahahah!!!! Yes, things happen for no particular reason. Damn near magical. Move along sheep.
Idiot news writers. The stock exchanges refuse to comment of course. Might have to investigate this phenome oh! Kardashian is on >_>

 

[useless]

Conspiricy theorists are their own worst enemies.

 

[Leoreth]

But that has always been just a part of the conspiracy!

You just need to train your arbitrary skepticism skills.

 

[TomYo689]

This is maybe the 2nd funniest thing I've seen today

Arnuk, whose firm follows these events, often pointing them out on Twitter, says there is typically some type of stress that induces the move. He cites the recent example of Home Depot, whose stock saw a big spike in volume, plunging 80 cents from $63.50, and then returning to that level in less than two seconds. But Arnuk also maintains that high-frequency traders, who are now the primary liquidity providers in the U.S., are the cause of such incidents.

1.5% is not a flash crash that's normal trading lol. It'll tell you what happened; an institution dropped their home depto stocks. If that's a conspiracy to you then I don't know what isn't. We are in a constant state of flash crash conspiracies every day for every security.

 

[Kaitzilla]

This is maybe the 2nd funniest thing I've seen today

Arnuk, whose firm follows these events, often pointing them out on Twitter, says there is typically some type of stress that induces the move. He cites the recent example of Home Depot, whose stock saw a big spike in volume, plunging 80 cents from $63.50, and then returning to that level in less than two seconds. But Arnuk also maintains that high-frequency traders, who are now the primary liquidity providers in the U.S., are the cause of such incidents.

1.5% is not a flash crash that's normal trading lol. It'll tell you what happened; an institution dropped their home depto stocks. If that's a conspiracy to you then I don't know what isn't. We are in a constant state of flash crash conspiracies every day for every security.

1.5% IS a flash crash if it happens in 0.1 seconds.
http://www.zerohedge.com/news/when-it-all-goes-bidless-what-losing-1-billion-100-milliseconds-looks

Perhaps you don't know about stop loss orders and why people who use them might be annihilated by these "accidental" flash crashes.
http://www.investopedia.com/terms/s/stop-lossorder.asp#axzz2HseeH4IH

Just one more reason live human beings continue to leave the stock market in droves. If the robots rape you, they keep the money. If they make a mistake and you win big, the trade gets canceled.
In the USA that is called "fair"


If George W. Bush had managed to get Social Security Privatized (as in all that money placed into the stock market), he would have become the greatest criminal in history.
http://www.huffingtonpost.com/2010/10/22/george-w-bush-reveals-his_n_772209.html

 

[TomYo689]

I assume this is done with the same mindset as all conspiracy theories are presented. How much experience do you have in the stock market? I actually use stop loss order regularly. Take a phenomenon you don't understand and try to make a big deal about it

 

[Kaitzilla]

I assume this is done with the same mindset as all conspiracy theories are presented. How much experience do you have in the stock market? I actually use stop loss order regularly. Take a phenomenon you don't understand and try to make a big deal about it

You are right.
I do not trade the stock market, but enjoy the conspiracy-ness of it all.
I just read the blogs of irate market traders.

http://market-ticker.org/akcs-www?post=189999

Simply put, nobody cares. Our so-called "central banker" is at this moment "testifying" in The Senate while the SEC does nothing, yet he takes "credit" for the stock market's rally. You, as an individual investor, cannot analyze stocks and then place trades with that information with any sort of protection against ruinous loss not because you were wrong, but because someone has decided to attack the stock with an algorithm designed to distort the market and trip your stop-loss orders.

http://online.wsj.com/article/SB10001424052748703950804575242942496526282.html

 

[Kaitzilla]

Still not seeing the conspiracy yet? Let me get out the Big Guns!!!

http://www.nytimes.com/2009/07/07/business/07goldman.html?_r=3&ref=business&

Someone stole Goldman Sach's trading software in 2009 and got caught. Little noticed at the time, a big admission was made in the middle of a NYT story about it.

However, at a court appearance in Manhattan on July 4, Joseph Facciponti, the assistant United States attorney, told a federal judge that Mr. Aleynikov’s supposed theft posed a risk to United States financial markets and that other people may have had access to it, according to Bloomberg.

“The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” Mr. Facciponti said in the court, according to Bloomberg.

How much more proof would you like?

 

[Traitorfish]

"More" implies that you have any to begin with.

 

[TomYo689]

Hold on say we have a grand conspiracy on the nyse, should we let the big corrupt government intervene or will the free market guide American investors to the Tehran stock exchange?

 

[Kaitzilla]

"More" implies that you have any to begin with.

I accept your challenge


First, the SEC's biggest bust in the last 10 years, Bernie Madoff! How was this mastermind caught?

http://money.cnn.com/2009/02/04/news/newsmakers/madoff_whistleblower/

Markopolos began contacting the SEC at the beginning of the decade to warn that Madoff was a fraud. He sent detailed memos, listing dozens of red flags, laying out a road map of instructions for SEC investigators to follow, even listing contacts and phone numbers of Wall Street experts whom he said would confirm his findings. But, Markopolos' whistle-blowing effort got nowhere.

"I gift wrapped and delivered the largest Ponzi scheme in history to them and some how they couldn't be bothered to conduct a thorough and proper investigation because they were too busy on matters of higher priority," Markopolos told the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises.

What's that? A fellow trader noticed that Madoff had profits that were mathematically impossible and took the proof to the SEC. Over and over and over and over and over again. They were of course too busy with matters of higher priority. But the lone man was eventually proven right given enough time.


Now lets look at the trading profits of some others whom are mathematically impossible:

http://www.theatlanticwire.com/busi...nks-managed-miraculous-perfect-quarter/24475/

4 giant banks managed to make a profit trading every single day for an entire quarter in 2010. How many of you regular investors can do that? Bernie Madoff could.

'Rigged' Game Liberal blogger John Cole is highly suspicious. "They didn’t play a perfect game. They played a rigged game. Someone want to explain the role of high frequency trading and the other tools at their disposal to the NY Times."

The 4th was Goldman Sachs, a year after their trading program that could manipulate markets unfairly was stolen and recovered.

 

[Kaitzilla]

Hold on say we have a grand conspiracy on the nyse, should we let the big corrupt government intervene or will the free market guide American investors to the Tehran stock exchange?

Well first, the government needs to go back to criminally prosecuting big bank execs instead of just fining the company.

2nd, the fines should always be made bigger than the stolen money instead of a tiny fraction.

3rd, they should fire the entire SEC and put in Bill Black to head the thing and really start putting the squeeze on the fraud.

And 4th, Glass-Steagal needs to be reinstated in full.

Revoking Banking Charters should also be put back onto the table for unendingly repeat offenders.


This is one of those cases where the free market won't fix things any time soon I'm afraid
Up to the government sadly.

 

[Neomega]

you all are disgusting! You disgust me!! And you are DANGEROUS!