dagblog - Comments for "The Flash Crash Boy"

Way to go, Michael!

Oxy Mora — Wed, 22 Apr 2015 18:13:59 +0000

Way to go, Michael!

Goldman Sachs proved time &

PeraclesPlease — Wed, 22 Apr 2015 17:24:48 +0000

In reply to This gaming the shorts stuff

Goldman Sachs proved time & again it's okay to scam the big players (half of the Greek bailout is Goldman Sachs' 2nd set of books). HSBC backed terrorists. Swiss bank & Barclays have major scandals... The lesson is "don't be a little fish or you'll get eaten; if you're Jamie Dimon you'll do fine".

Martha Stewart got whacked for a $40K inside trading goof. She set herself up as perfect front page fodder - feds get to pretend they do their jobs, Wall Street guys get a big chuckle, business goes on as usual, Wolf of Wall Street style.

This gaming the shorts stuff

NCD — Wed, 22 Apr 2015 17:09:34 +0000

In reply to A bit strange - the naked

This gaming the bids stuff is SOP for the big firms who have license from the SEC to run scams...from the Marketwatch link in my post above:

Sarao characterized his own trading as just demonstrating to a friend “what occurs on the bid side of the market almost 24 hours a day....On social media, he was mocked both for soliciting outside help to create software and for the relatively small size of his profits relative to the disturbance he allegedly caused.

Lesson, it's OK to scam the little players, but don't make it obvious the dice are loaded.

...A MINNOW DISGUISED AS A

Richard Day — Wed, 22 Apr 2015 16:41:44 +0000

In reply to The Flash Crash Boy

...A MINNOW DISGUISED AS A HUMP BACKED WHALE.

hahahahhahahah

From now on you and Mike W shall be known as THE BEASTS.

This is great.

A bit strange - the naked

PeraclesPlease — Wed, 22 Apr 2015 15:34:15 +0000

In reply to The Flash Crash Boy

A bit strange - the naked short selling case of Overstock.com against Goldman Sachs, Merrill Lynch & Bank of America is much bigger, and Overstock humorously (or not) received a copy of internal emails specifically admitting the practice with typical trader bravado. The case against Goldman Sachs got thrown out because Overstock failed to prove the activity happened in California, but the court explicitly stated that Overstock had a triable case against Merrill Lynch's clearing division. It's been 10 years of people claiming Patrick Byrne is a paranoid psychotic, but all the suspected illegal activities have come out as true - even if as likely, no one will pay and no one will go to jail. Hey, it's the American Way™!!!

His computers fooled the big

NCD — Wed, 22 Apr 2015 15:00:45 +0000

In reply to The Flash Crash Boy

His computers fooled the big market players computers. His algorithms beat their algorithms.

This is deregulated 'good faith' free market capitalism today.

From Marketwatch:

...E-mini trading spilled over into the equity market and helped trigger the extreme movements. But the E-mini trades (by Singh Sarao) that the agencies said triggered the big moves (that) were from a large trader, subsequently identified as Waddell & Reed.

Waddell & Reed has always maintained that their trades were not out of the ordinary.

When Wall Street crashes again, then the government will write a taxpayer backed (socialist) blank check (again) to put the casino players back in the business of playing main street for fools.

Fantastic piece, Mike.

Michael Wolraich — Wed, 22 Apr 2015 13:58:09 +0000

In reply to The Flash Crash Boy

Fantastic piece, Mike. Congrats!