"We risk becoming the best informed society that has ever died of ignorance"
-
Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
-
Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

Saturday, January 7, 2012

GOP Debate Schedule For 2012

Trying to keep up with these things is a headache, so to save time courtesy of 2012 Election Central, here is the debate schedule for GOP.

Santorum Live From NH


A Response To The Government Office For Science Report on "The Global Financial Markets: An Ultra-Large-Scale Systems Perspective"

This paper misses the mark on the interactions within ultra-large-scale systems.  The author seems keen on believing the regulators have supreme knowledge of the systems they oversee and that the only problem with the Flash Crash was speed and severity of price drop (not the ignoring of Reg-NMS, not the Quote Stuffing, not the Co-Location, not the Dark-Pools where assets are traded in the dark, etc).  This is what chaps us the most.  History is not only being re-written, it's also being stored and manipulated in long and drawn out analysis papers like this one that essentially go nowhere. 

The Emperor Of The Ants

The SNB has an Excel spreadsheet laying out the key assets that are pledged as collateral to the SNB when participating in repurchasing agreements.   Some notable names on the list are:

Erste Abwickl - Germany
Erste Group Bank AG Wien - Austria
KFW Kreditanstalt für Wiederaufbau - Germany
Nestlé Holdings Inc - United States

Friday, January 6, 2012

The Fractured Structure of Western Power In The Global Space

Paddy Ashdown is the author of A Fortunate Life and revealed his views at a recent TedX Talk in Brussels regarding the global shifts of power we are seeing today.  He highlights three main events in the near future that will establish the loss of power residing in the West and the new emergence of it on a global scale, were everyone is accountable to everyone.  We've seen this with the G7, G8 and now G20.  The climate of the global mood during times of power changes are "accompanied by turbulence and, all too often. blood".  According to Ashdown we are living in just that climate right now as the US begins to lose its grip on its power (excessive spending has resulted in cuts in defense spending and a complete shift from manufacturing to sole service industry) and the new powers for the foreseeable future are beginning to form.

Examples of this type of global emotion are drawn from the two great World Wars where power shifted from old Europe to the new America, the military industrial complex.  He highlights the lateral shifts in power from the Greeks to Rome.  Today the real power is not moving laterally only, its also moving vertically.  This means that the polar powers of the world are coming together to make alliances and treaties which outline the acceptable ways to interact on a global scale.

PACW Blast - 50,000 Quotes, 0 Trades

PACW was blasted at 12:22:42

FRBNY Staff Paper "Optimal Target Criteria For Stabilization Policy"

From FRBNY:

This paper considers a general class of nonlinear rational-expectations models in which policymakers seek to maximize an objective function that may be household expected utility. We show how to derive a target criterion that is
  1. consistent with the model’s structural equations, 
  2. strong enough to imply a unique equilibrium, and 
  3. optimal, in the sense that a commitment to adjust the policy instrument at all dates so as to satisfy the target criterion maximizes the objective function. 

Thursday, January 5, 2012

S&P 500 Trading Compared To 2011

Hildebrand Transcript From January 5th, 2011

What the "bankers" are failing to understand is that we don't care if their crony buddies who make the laws agree whether or not their actions are legal and justifiable.  Even in the US the people are fully aware of governmental insider trading.  The guys who make the laws are bought and paid for as a part of daily business operations and willingly vote down laws to prevent it, even though the people called for it.  Hildebrand starts off saying that he feels he broke no legal limits but that he realizes "the general public is also expressing a moral concern".  The moral here is that even though he committed what may be viewed as unethical, his treatment is far different then we might experience if it were a hedge fund manager.  The word bubble ought to lend a visual aid.

Ponzi Funding

The BoJ has just released their dates for expected US Dollar Funding Supply Operations (embedded below the charts).  This comes in the wake of the FRBNY release regarding the US Dollar Liquidity Swap Line usage data.  This week the supply of dollars to BoJ, ECB, and SNB remained unchanged from their jump which was reported last Thursday.  As for the the US Fed bailing out Europe, that seems to be what is going on. 

Themis Trading Looks Into 2012 And Sees.....

Themis Trading has released their 2012 predictions.  Though they are designed as a light laugh, the reality is that the humorous, far-fetched possibles are now very real events.

Wednesday, January 4, 2012

Spin: Democracy At Work

Now that 2012 is here and the election pool has been trimmed, the remaining candidates will be scattered across the airwaves and their handlers will retain full control.  Back in 1995, Brian Springer spent a year scouring the airwaves with a satellite dish grabbing back channel news feeds not intended for public consumption. The result of his research is SPIN, one of the most insightful films ever made about the mechanics of how television is used as a tool of social control to distort and limit the American public's perception of reality. Take the time to watch it from beginning to end and you'll never look at TV reporting the same again.

The treatment of Larry Agran reminds of the current treatment of Ron Paul.  You be your own judge.

Tuesday, January 3, 2012

Friday, December 30, 2011

ECB Swap Lines from FRBNY Skyrocket!

And here is the US to support the Ponz even more.  Check it out yourself here.  Scroll down to August 24, 2011.  The ECB and Swiss National Bank had outstanding amounts but it was not recorded in the total.  The week before the SNB drawn number was recorded in the total but the next week the ECB's draw was not in the total.  Not sure what the "spirit" of the move is but keeping with the central plan of central planning, it was meant to mislead I'm sure, perhaps something to do with rehypothecation.....

Wednesday, December 28, 2011

Greece In A Great Depression As Japanese Echoes Reappear In The U.S.

The unthinkable has happen in a member of the European Union and the eurozone:  an outright Great Depression.  Ekathimerini reports from Greece in an English language e-newspaper:
Greece’s stores had their worst Christmas in decades, with retail sales dropping by 30 percent compared with the same period last year as the economic crisis shattered consumer confidence, the ESEE retail federation said on Tuesday. 
“Nine out of 10 Greeks are less generous, not out of choice but out of necessity,» ESEE said. «Retailers endured a Christmas gloom that chipped away any optimism they had before the holidays.”
The sharp drop in sales came despite widespread discounts by retailers in the run-up to Christmas.
Greeks have been suffering wage and pension cuts, rising inflation and a recession now into its fourth year, which has slashed living standards and forced them to cut spending.
Clothing and footwear sales dropped 40 percent, electrical goods by 30 percent, and sales in the food and drinks sector by 15 percent compared with the same period last year, ESEE said.

Tuesday, December 27, 2011

Chapter 8: Al-Qaeda, Iran, & Some Mafia-tied Agents Of Economic Sabotage

This will be the last chapter we post here for awhile.  There has been a revelation that the Deep Capture may be back up again and if this story is true, we'll make sure to inform you.  If the Canadian government decides to continue its injunction on the Deep Capture material, we will leak the remaining chapters from the site.

Waivers From Pre-Trade Transparency

The European Security Markets Authority paper titled Waivers From Pre-trade Transparency.

Bank of Japan's Meeting Minutes From The Day Central Banks Announced Their Coordinated Actions

Source: WilliamBanzai7

Sunday, December 25, 2011

CNN Busted For Journalism Manipulation In Ron Paul Interview

CNN is a bunch of idiots.  Wolf Blitzer makes his Alma Mater embarrassed with his pathetic existence.  In a continuation of the nauseating bullshit being spread over the dying TV media, CNN decides to focus on the ONE thing they THINK they have CAUGHT Ron Paul on, which is a story regarding the publication of material back in the 80's that purportedly netted Paul the psychologically round number of 1 Million USD.  As CNN likes to do, they decided not to focus on issues like Congressional Insider trading and willingly chose to shine light on a topic that is irrelevant to most American's and one that they hope will keep Ron Paul from being elected and enabling us to correct America.  Its amazing that with the internet people still rely on the slow, slanted, and ignorant reporting of TV news.  You can get online and look at FRBNY Liquidity Swap lines yourself but most people would rather watch football and then get their news feed to them so they have a chance at feeling intelligent when the big boys who run the world are the topic of discussion.  As further proof to the manipulation being offered through the dying medium here are two videos of a CNN interview with Ron Paul.  Part 1(which was edited at 2:29) is the manipulated version that was aired for the idiots absorbing pleasure and Part 2 is the full, uncut version .  CNN made it look as if Ron Paul walked off the set, yet you'll see that was not even close to the reality.  Nice spin CNN, Bill O'Reilly would be proud.  The kicker is Paul's comment as he leaves "I know how the system works".

Satyajit Das On What Went Wrong With Finance

From NakedCapitalism:
Rob Johnson interviewed world renowned derivatives expert Satyajit Das on the evolution of modern finance. As Das recounts, he got in more or less on the ground floor as sophisticated new products and modeling techniques were introduced. Although Das is wry and understated in his criticisms, he is clearly skeptical of how the financial services industry has evolved. 

Tuesday, December 20, 2011

HFT Activity Recap for December 20th, 2011

Here are two HFT examples of SPY and 1 of LULU from this morning.  This was the time period where HFT Alert Pro picked up the largest quote lots.  To appear on this list in HFT Alert Pro, an algorithm must send 1000 quotes inside of 1 second.  The quotes you will see are what appear on other exchanges and the 1000 we referred to are sent on the identified exchange (NQEX = Nasdaq, PHIL = Philidelphia, etc).  So remember that the levels we report are the IQTS column plus the hidden column of 1000.  Example A shows IQTS of 15567 and to even show up it had to have sent 1000 therefore the total quotes are 16567.  For for more information on how to read the HFT lay out, scroll down on this page and you will see a description.  Sadly for 1:30 gap down we don't have anything, yet.  Perhaps a kind work to the guys at Nanex will yield some results and if it does, we'll update you. 

The HFT Song

An afternoon serenade on a positive 250 bp market day care of Themis Trading.  The program on the screen is HFT Alert.

Baltic Dry Index

Here is the BDI - (Baltic Exchange Dry Index).  It's daily assessments from various selected charter brokers of the previous days "fixtures" (chartering contracts), for 3 sizes of dry bulk ships (listed below). Bulk, meaning the cargo is not in containers. Generally it's coal, ores or grains.  You can follow shipping traffic patterns and various vessel geographic densities here.

Monday, December 19, 2011

I Smell A Rat

Aside from Wolfman's observation, here is what else may have contributed to said upchuck.

Need we highlight what happened a mere seven trading days ago?

The Banking Queen

Barney Frank shows us his new style of awesomeness live on TV earlier this evening...

Stuffed Like A Turkey

Nanex has released another report regarding OPRA (Options Price Reporting Authority) quote flooding.  Quick note: on their page, which is linked just prior to the article below, the final chart has a click through of 7 images, the one we show is image #4.  What the firm noticed was that ISE (or International Securities Exchange) would return to low quote rate levels just after OPRA would peak at 3 million quotes per second.  Then ISE would surge again subsequently followed by total OPRA traffic reaching new highs.  This is just another example of the knock-on problems created by HFT and the inability of human to interfere fast enough.  Often these programs are designed to evolve on their own, taking on new strategies and new tactics over time.  We need to weed out the bad apples and make this behavior avoidable for those seeking refuge from manipulative strategies.  This form of market trading is not within the spirit that financial markets were created under.

North Korean Leader Kim Jong Il Dead At Age 69

Sunday, December 18, 2011

IMF Working Paper on The Role Of Rehypothecation Within The Shadow Banking System

This paper examines the sizable role of rehypothecation in the shadow banking system. Rehypothecation is the practice that allows collateral posted by, say, a hedge fund to its prime broker to be used again as collateral by that prime broker for its own funding. In the United Kingdom, such use of a customer’s assets by a prime broker can be for an unlimited amount of the customer’s assets while in the United States rehypothecation is capped. Incorporating estimates for rehypothecation (and the associated re-use of collateral) in the recent crisis indicates that the collapse in non-bank funding to banks was sizable. We show that the shadow banking system was at least 50 percent bigger than documented so far. We also provide estimates from the hedge fund industry for the – churning – factor or re-use of collateral. From a policy angle, supervisors of large banks that report on a global consolidated basis may need to enhance their understanding of the off-balance sheet funding that these banks receive via rehypothecation from other jurisdictions.

Bank Of England 2011 Q4 Bulletin

Over the past year the recovery in the UK economy appears to have slowed. An article in the Bank of England’s Quarterly Bulletin, published today, explains that a key reason for the weakness in UK demand has been falling consumption, reflecting the challenging environment facing households. Evidence drawn from the ninth annual survey of households carried out for the Bank of England by NMG Consulting suggests that most households have experienced an income squeeze over the past year. And around half of households reported that they had been affected by, and had responded to, the fiscal consolidation. For example, by either seeking a new job or working longer hours. But the article says that reported levels of financial distress appear to have been contained by the low level of Bank Rate and some forbearance by lenders. Looking ahead, surveyed households report uncertainty about their future incomes and expect to continue to be influenced by the fiscal tightening.

The World Complex: Self Organization & Wealth Distribution

With the continued efforts of OWS to take from those who have been either diligent or just plain better players, The World Complex offers a take on the characteristics of wealth distribution.  Many of us understand that life is not fair, fair is a perception.  If you spend your nights watching Dancing With The Stars and drinking getting smashed all day Friday night so you can brag about hungover all day Saturday, you will not bode well in an economic storm.  Preparation, concentration, hard work, and a keen perception to the world we live in is what enables the players at the top to capture the most coin.  To use the system, you must understand the system.

Michael Price On Problems At The NYSE

Michael Price is managing partner of MFP Investors LLC.  He explains first hand the difficulties he faces when he attempts to execute sizable trades in the markets, you know the place where HFT perform their most awesome act of "providing liquidity" and "tightening spreads" while earning a mere "$0.75 per $100 (see page 2 footnote 2)".  He explains how he gets "absolutly creamed" by the computers that "front run orders".  Without holding back, the former CEO and President of Franklin Mutual Advisors bluntly claims this decision to enable high frequency trading was a "total dereliction of duty on the part of the SEC and the NYSE", a view point we're confident all readers share.  Furthermore the core of the regulating body is tainted with corruption hindering the ability of good people to bring about the necessary market transparency required for efficient price discovery and fair trade. 

Friday, December 16, 2011

Deleveraging In The Eurozone

Europe is up shits creek.  Whatever news comes out will be designed to confuse, fluster, and/or mislead those who are not willing enough to research the issues at hand.  On December 8th the Euro Banking Authority Board of Supervisors stated in reference to a new bank requirement that capital positions be strengthened by building up "exceptional and temporary" capital buffers against sovereign debt exposures that "these buffers are explicitly not designed to cover losses in sovereigns but to provide a reassurance to markets about the banks’ ability to withstand a range of shocks and still maintain adequate capital ".  There you have it.  Ignore the problem and fool the participants.  There is no hope to help the crumbling European Monetary Union.  The Eurozone is one rehypotecated clustefuck and the big ups over there know it.  As for addressing the problem right away, VoxEu highlights that "wholesale deleveraging could trigger a vicious spiral, with a reduction in lending decreasing economic activity which would, in turn, damage banks’ balance sheets and result in a need for additional capital".  Read their report below.

What's Next, What's Next, What's Next?

A citizens stupidity is his own demise.  To think a $0.03 tax on $100 will help the poor idiots who spend all their money on beer and Honda Civic rims is simplistic.  The problem rests in not understanding traders, markets, government, or anything for that matter.  See that is the problem with being "told the news" and "finding the news" is.  The issue isn't a measly 3 cents on 100 bucks, its how the game is played.  If these reporters didn't have their heads so far up their academic asses we might have a better educated serf public.

BoE Statistical Release for 12/16

UK-owned monetary financial institutions and their branches and subsidiaries worldwide reported a decrease in consolidated foreign claims on an ultimate risk basis of $62.4 billion during Q3 2011, to stand at $4,125.2 billion. The largest fall was to Developing Countries, down $50.9 billion to stand at $929.0 billion, with the largest decrease in claims on Brazil, South Africa and the Republic of Korea. Claims on Offshore Centres fell by $26.6 billion to $520.6 billion, driven by a fall in claims on Jersey. Claims on Developed Countries were up $11.8 billion to stand at $2,638.7 billion, more than accounted for by a rise in claims on Germany and the Netherlands.

Developed Countries had net outward risk transfers of $25.6 billion, with the largest from the United States and Ireland. Offshore Centres had net outward risk transfers of $57.4 billion, mostly from Hong Kong and the Cayman Islands. Developing Countries had net inward risk transfers of $10.7 billion, with the largest net inward risk transfers reported to India and Brazil.

Thursday, December 15, 2011

December 15th Fox News GOP Debate Live

Tonight, Part 43 in a 164-part competitive reality series known as the 2012 GOP Presidential Primary. It’s like Survivor in that there is something of a tribal counsel, but it’s also like a soap opera in that characters come and go in mysterious and inexplicable ways. Now, via the magic of streaming Internet video, you can watch it in the comfort of sitting in front of your own computer!

Westinghouse Air Brake Tech "VWAP" HFT Attack

Nanex just released a report on the VWAP blast yesterday on WAB.  If you are subscriber to HFT Alert Pro what you saw at 15:53:13 was on the Nasdaq a blast of 4400+ quotes, that took 2 seconds to complete a recognized algo cycle, which means it started running at 15:53:11.  During that time the algo began a new cycle on the NYSE that took 3 seconds to meet the characteristics that would identify it.  In that time periods, the stock price rose from $64.22 to $69.33.  Below is the text image that comes in real-time from HFT Alert Pro.

Corzine Live Yet Again


Wednesday, December 14, 2011

China's Dominance Hypothesis And The Emergence Of A Tripolar Global Currency System

Following the irrational exuberance post gold-pegged dollar, the US has seen its currency fall from the dominant roll in the global financial system to a roll that merely covers just an area of the world, serving a simple location and a simple purpose because of locational fear.  Government notes are merely sheets of paper that the citizens are willfully subject to thanks to the perception created through private property laws and the physical force that government can exert to uphold those laws thus injecting value to those dollars through "freedom".  The global stage has witnessed the incredible demise of the US dollar as the example of respect for private property and as strength through government force.  With Chairsatan Bernanke printing dollars and handing them out left and right, the public property as been looted and the government has done nothing to prevent it, actually they've defended it.  The rest of world clearly views this behavior as damaging and VoxEu gives the empirical data to back it up.  The strong arm, manipulative nature of the Chinese is driving respect for the renminbi and the Asia-zone obviously values it above US Dollars.  The US's post 2008 behavior has put the country on course to become the next Zimbabwe and the global financial system, as retarded as it is, knows it.