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I figured you would have been reading up on this type of trading...at least somewhat? It's been decently documented their running this onsuper computers with sophisticated software. Proprietary at that.Originally Posted by finnns2003
Originally Posted by kicksfiend
Originally Posted by poblack
You all do know that large banks manipulate stock prices everyday right?
This troublesome once you start considering that some of this trading is high frequency trading (which was NOT banned, flash orders were). They set up super computers a few feet away from the NYSE servers (it's called collocation if you want to look into it) and it allows them to essentially front run the market. They get information before others do and they're able to react before others.
I figured there were supercomputers involved in this, seriously. They have the funds to purchase computers most people can't even fathom.
JP Morgan's prop trading accounted for 1% of revenue, while GS's accounted for 10% of revenue. Stop reading ZeroHedge, it'sdisgusting.Originally Posted by kicksfiend
Originally Posted by poblack
You all do know that large banks manipulate stock prices everyday right?
^THIS
First off, I don't agree with A LOT of what Obama, Ben Bernanke, Timothy Geithner and the rest of these clowns have done in response to this financial crisis. The only person that I find myself agreeing with a lot of the time is my homie Paul Volker. THIS plan I agree with. Not because it's going to punish the banks or because the politics but because of WHAT IT WILL DO.
A lot of you guys don't trade or take part in the financial markets on a regular basis. The Obama administration has completely #@@%@@ up the financial markets in the past year. I won't go into the whole spiel about quantitative easing, primary dealers and the entire process but the financial markets have become a casino where the big banks are the major players. Take a look at where the profits in the last year came from. JP Morgan and Goldman Sachs made most of their revenue from TRADING. Goldman Sachs AVERAGE VAR (value at risk) for 2009 was about 200 million. Value at risk is the value they risk in the market every day. TWO HUNDRED MILLION DOLLARS EVERY DAY. In the 3rd quarter, I think they had 35-36 days where they PROFITED OVER ONE HUNDRED MILLION DOLLARS. Add to that they profit ALMOST EVERY DAY. I don't remember the exact statistics but last I recall, they had about THREE down days in the ENTIRE 3rd quarter. They're raping the financial markets every day.
This troublesome once you start considering that some of this trading is high frequency trading (which was NOT banned, flash orders were). They set up super computers a few feet away from the NYSE servers (it's called collocation if you want to look into it) and it allows them to essentially front run the market. They get information before others do and they're able to react before others.
The biggest problem with all of this is the fact that GS is also an investment bank. They have HUGE conflicts of interest. For example, they have analyst that put out ratings on stocks that essentially move the market. I can't tell you how many times I've seen buy ratings out on stocks that didn't deserve it. According to traders I know, GS regularly puts out ratings that affect positions they hold. To put it simply, if traders at GS have a position in company ABC, it's not surprising to see a buy rating on company ABC.
This plan is a good thing IMO. If this happen, trading volumes will be 10% of what they use to be and the market will be a whole lot less volatile. Guaranteed. That will hurt me as a trader but it's better than letting them control the market every day.
I'm glad the Obama Administration has pulled it's head out it's !%! for once and decided to do something that makes sense. Let's see if this continues.
No doubt they will if this goes through. And so will MS.Originally Posted by finnns2003
Hmm... I figured Goldman would drop its status to continue trading.
So shouldn't we be targeting derivatives rather than prop desks?Originally Posted by reemz
The deregulation of derivatives are what got you guys in the financial mess that you're in. If Obama actually intends upon reform I don't see how this can hurt you.
Originally Posted by TheeQuickness
Obama is going to get assassinated.
Originally Posted by DJisMe3
very.Originally Posted by QueenCitySneakerQueen
Originally Posted by TheeQuickness
Unnecessary
as an occasional reader, what's your beef with ZH?Originally Posted by reigndrop
JP Morgan's prop trading accounted for 1% of revenue, while GS's accounted for 10% of revenue. Stop reading ZeroHedge, it's disgusting.
JP Morgan's prop trading accounted for 1% of revenue, while GS's accounted for 10% of revenue. Stop reading ZeroHedge, it's disgusting.Originally Posted by reigndrop
No doubt they will if this goes through. And so will MS.Originally Posted by finnns2003
Hmm... I figured Goldman would drop its status to continue trading.
So shouldn't we be targeting derivatives rather than prop desks?Originally Posted by reemz
Originally Posted by NYVictory45
I don'thave a problem with it. I'll admit I don't know much about economics but it seems to me that as long as the government refuses to let these big companies fail and is using taxpayer dollars to save them, it might as well put some limitations on the amount of risk it can take. The government doesn't wanna have to bail them out every few years.
I have, I just assumed they were generously equipped high performance computers, but now it makes sense. I can imagine a time in the future whereartificial intelligence comes into play, in terms of trading.Originally Posted by LazyJ10
I figured you would have been reading up on this type of trading...at least somewhat? It's been decently documented their running this on super computers with sophisticated software. Proprietary at that.Originally Posted by finnns2003
Originally Posted by kicksfiend
Originally Posted by poblack
You all do know that large banks manipulate stock prices everyday right?
This troublesome once you start considering that some of this trading is high frequency trading (which was NOT banned, flash orders were). They set up super computers a few feet away from the NYSE servers (it's called collocation if you want to look into it) and it allows them to essentially front run the market. They get information before others do and they're able to react before others.
I figured there were supercomputers involved in this, seriously. They have the funds to purchase computers most people can't even fathom.
Banks aren't really "private businesses". For example, if me and you don't like Bank of America, can we open up our own bank tocompete?Originally Posted by stateofsingularity
Originally Posted by NYVictory45
I don'thave a problem with it. I'll admit I don't know much about economics but it seems to me that as long as the government refuses to let these big companies fail and is using taxpayer dollars to save them, it might as well put some limitations on the amount of risk it can take. The government doesn't wanna have to bail them out every few years.
This is exactly what's wrong.
The Fedz should not be bailing out private businesses. Nor should they be restricting them.
bring back the gold standard and the problems solved. they should have never bailed out the banks in the first place.Originally Posted by cguy610
Banks aren't really "private businesses". For example, if me and you don't like Bank of America, can we open up our own bank to compete?Originally Posted by stateofsingularity
Originally Posted by NYVictory45
I don'thave a problem with it. I'll admit I don't know much about economics but it seems to me that as long as the government refuses to let these big companies fail and is using taxpayer dollars to save them, it might as well put some limitations on the amount of risk it can take. The government doesn't wanna have to bail them out every few years.
This is exactly what's wrong.
The Fedz should not be bailing out private businesses. Nor should they be restricting them.
The Feds responsibility is to maintain the integrity of our banking industry. Which means they should bail out banks if it needs to be done to prevent a depression and they should be restricting them.
Originally Posted by XxHonchoxX
@ the Lamb.
Not really.. If you do that's good for the majority of Americans... In their eyes damned if you do damned if you don't.. But in realityfor this country we are damn if he doesn't.. So him doing (FINALLY) is appreciated.Originally Posted by HueyP in LouieV
The Wall Street fatalists blog that Doomsday is around the corner because the administration missed a prime opportunity for real financial regulation....then when the President talks about instituting regulation Joe the Plumber (who imagines himself to be Carl Icahn) starts screaming bloody murder....
Damned if you do, damned if you don't.
Bro, I am the General Counsel of a multi-billion dollar private equity fund. Don't talk to me about not knowing what this means.Originally Posted by cguy610
^ Might as well post random stuff in here. It's obvious the people who commented so far don't know the difference between banks, private equity funds, and hedge funds.
which fund . . . ?Originally Posted by HOVKid
Bro, I am the General Counsel of a multi-billion dollar private equity fund. Don't talk to me about not knowing what this means.Originally Posted by cguy610
^ Might as well post random stuff in here. It's obvious the people who commented so far don't know the difference between banks, private equity funds, and hedge funds.
YOU sir, have no idea what something like this could mean. Bsically, Obama decided that banks shouldn't invest in certain things because he deems them too risky. %$@ is the president of the US making determinations as to what is "too risky" for banks to invest in? The fund I work for has NEVER lost money for its investors, some of whom are the large banks noted in the article.