Daily Agitator

The collapse of the American economy in 2008 , all eyes were focused on the derivative trading markets, where these banksters gamble and if they lose they stick the taxpayer with the bill and if they win they keep all the profit…..good gig if you can get it…..

But now with everyone watching the Banksters a new trick is being employed……(from moneymorning.com)

Well, here’s the secret: They’ve found a new way to skim more of the cream off the top of U.S. economic activity. It’s called “High-Frequency Trading” (HFT).

High-frequency trading uses the speed of supercomputers to trade faster than a human trader ever could. Human owners of the supercomputers program them to take advantage of information milliseconds faster than other computers, and whole seconds faster than ordinary human traders.  This is not a minor development; HFTs now represent about 70% of the trading volume in the U.S. equity market.

HFT computer servers are able to beat other computers because they are located at the exchanges. They take crucial advantage of the finite speed of light and switching systems to front-run the market. They also gain information on orders and market movements more quickly than the market as a whole. They operate not only on the New York Stock Exchange (NYSE), but also on the electronic trading exchanges such as the NYSE hybrid market.

Predatory algorithmic traders take advantage of the institutional computers that chop up large orders into many small ones. They make the institutional trader that wants to buy bid up the price of shares by fooling its computer, placing small buy orders that they withdraw. Eventually the “predatory algo” shorts the stock at the higher price it has reached, making the institution pay up for its shares.

The bottom line for us ordinary market participants is that insiders are using computers to game the system, extracting billions of dollars from the rest of the market. While it is illegal to trade on insider knowledge about company financials, these people are trading on insider knowledge about market order flow. That’s how Goldman Sachs and the other biggest houses make so much from trading. By doing so they are rent-seeking, not providing value to the market.

See….did not take these thieves long to find a way to replace all the profits they would losing with government money intervention…these a/holes learned nothing from their past practices or the anger of the American people…the taxpayer is NOT ever protected from these predators and the fragile economy is being gamed….AGAIN!

As long as the system is based on GREED…we will always be at the mercy of these criminals….when will we ever learn?  ( a rhetorical question)