X-post: NYT "Blows Cover Off Trading Scam." Schumer Flips On Wall St.

[arendt]

Source: Daily Kos

Finally! It's been just over three weeks since the July 3rd arrest of former Goldman Sachs IT executive Sergey Aleynikov inadvertently blew the lid off the intricacies of exactly how those great vampire squids on Wall Street manage (no past tense here) to suck Main Street dry.

The high frequency trading ("HFT") scam on Wall Street is being exposed to the masses as we blog.
And, at least to some degree, it is because we blogged and it is because we took the time to spell out the details of this story in obscure trade magazines, and not-so-obscure larger media outlets, that this is happening now.

The NY Times' Tobin Harshaw provides what may be the very best--and pretty damn even-handed, too--roundup of current commentary on the matter in today's NY Times: "Weekend Opinionator: 'Is Wall Street Picking Our Pockets?'."...Then Harshaw paraphrases Denninger:


Karl Denniger at the Market Ticker writes that Duhigg has "blown the cover off the dark art" but thinks that the traders' computer speed isn't most important advantage they have. Rather, he says, the "algos," rather than providing liquidity as they are supposed to, intentionally probe "the market with tiny orders that were immediately canceled in a scheme to gain an illegal view into the other side's willingness to pay..."

Read more: http://www.dailykos.com/story/2009/7/25/757765/-NYT-Blows-Cover-Off-Trading-Scam.-Schumer-Flips-On-Wall-St. .


This is very important. I have not seen it at DU.

I don't comment here any more, so I will not respond.

[Lorax7844]

1. kick kick kick for this being a good thread worthy of attention.

[Po_d Mainiac]

2. Here's the link to the NYT

http://opinionator.blogs.nytimes.com/2009/07/24/weekend-opinionator-is-wall-street-picking-our-pockets/

[dixiegrrrrl]

3. Good find and thank you for posting this.

I follow Deninnger, daily, but was unaware that the MSM was on to the issue.
And yes, Deninnger did point out the "other" part to the scam.
And he mentioned Goldman Sachs by name several times.
You know, that bank that runs this country, and got the bailout and now is found to have been cheating at poker, so to speak?