goldman sachs says market may be manipulated (credit, company, interest)
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in part:
“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,” Facciponti said, according to a recording of the hearing made public yesterday. “The copy in Germany is still out there, and we at this time do not know who else has access to it.”
how ironic is it that goldman sachs says that their program has been compromised and that someone may take unfair advantage if they use it? robbers hate it when someone steals from them!
Goldman has become THE MARKET. They comprise nearly half of the programmed trading of the NYSE and are, in my opinion, a surrogate of the government. They have become the government, they run the 4th branch, THE FINANCIAL BRANCH OF GOVERNMENT.
A couple of months ago, we also learned through Zero Hedge [4] that Goldman had profited greatly from a sweetheart deal with the federal government concerning a new program instituted by the Feds known as "The Supplemental Liquidity Provider" Program ("SLP"), launched while we were all eating Turkey last Thanksgiving. It is supposed to provide "market liquidity" (i.e.: an ongoing, active market) for selected groups of 500 different NYSE stocks per SLP participant. The problem is as Durden pointed out to all who were interested, it certainly appeared to him that Goldman was the only active participant in the program.
We also learned from Bloomberg [5] that as of April, Goldman-Sachs had reaped the benefits of more $100 million-plus days of trading revenue than it had in the history of its business, WOW! HOW DID THEY DO THAT?
What many may not know is the fact that Goldman is at the heart of the government's Plunge Protection Team, a/k/a the "President's Working Group On Financial Markets," (thus making this a matter of so-called national security.) So you see there is the possibility that Goldman could have easily been "frontrunning" the rest of the market using their exceptionally fast proprietary computer program, or code as it is called, identifying others' market-making trades and strategies, then acting upon them for Goldman's own benefit, instead of reporting to the PPT , and executing in-house trades before the third-parties' trades were even concluded. So the Code may explain their extroidinary fortune lately. Ah, but trouble comes knocking.
(tpm cafe)
Last edited by floridasandy; 07-08-2009 at 05:40 AM..
Goldman has become THE MARKET. They comprise nearly half of the programmed trading of the NYSE and are, in my opinion, a surrogate of the government. They have become the government, they run the 4th branch, THE FINANCIAL BRANCH OF GOVERNMENT.
Like I said before.... I sense the government was manipulating the markets somehow...
of course it is! why do you think the FBI got involved so quickly in this, while madoff was under investigation for years and years? it is all about protecting the big boys of trading, not helping the little guys in trading.
matt taibbi had an interesting article on goldman sachs and the different bubbles. i think it is safe to assume that the next bubble planned is the carbon derivative bubble. i urge everyone to watch the accompanying video as to how this action impacts you.
The Great American Bubble Machine : Rolling Stone (http://www.rollingstone.com/politics/story/28816321/the_great_american_bubble_machine/print# - broken link)
honest wall street investors (which are many) are being burned by this goldman sachs nanosecond trading action. there is a playing field that is entirely out of whack on wall street and that is why this story is such a big deal.
Of greater importance to average investors is a dirty truth is revealed. Give Wall Street banksters a gaming stake (TARP) and what do they do with it? They give it to their HAL 9000 to trade the hell out of markets. Would you like a free trading stake and the computer to do it? Even though it would be self-defeating in the end, of course you would.
I couldn't help to laugh at Goldman Sachs's statement "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,”. An institution that has engaged in naked short selling and credit default swaps among other speculative and criminal activities claims that they are the only ones allowed to steal your money.
Do you mean GS finally figured out what they were doing. I suggest we move the Gamblers to a casino and let the market fairly distribute capital.
A thief in a business suit is no different that a thug in a bandanna.
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