It is more than just HFT; The Beast...
The most evil, fiendish machine of destruction ever created has been turned on. I call it The Beast.
The Beast is not an atomic bomb. It isn’t a missile or a deadly submarine with enough nukes to end life as we know it.
It is a computer. The fastest, most powerful ever made. Goldman Sachs owns and runs it. It is stealing your wealth day and night.
The Beast is so secret only a handful of people have actually seen it. The picture above is an educated guess of what it looks like. I based it on talks I’ve had with people who know some of the components of this market manipulation system from hell.
No one understands everything The Beast does. We do know it is connected, directly or indirectly, to every information system known to man. Every database. It is so fast, it runs circles around every other computer in the world. It has the power to manipulate (for a time) every market in the world.
Soon this system, or one like it, could be used to control most every aspect of your life.
Right now it is most dangerous for you, me and every American investor: because it is tied directly to the New York Stock Exchange computers. In fact, it is connected to every exchange computer in the world, be it stocks, commodities or bonds. It lets Goldman Sachs learn every stock order and commodity order that is placed on the NYSE or any other exchange – BEFORE the exchange executes it – and then jump in front of the market. This is called FRONT RUNNING.
Every time you, your mutual fund or retirement plan buys a stock, bond or commodity, you pay more than you should have. Goldman gets there first. Thanks to the power of The Beast. They bid up the price you paid. They gouge you.
In some cases, The Beast can freeze you out. Or worse, bust you out of your positions, a big loser. Many small investors learned this the hard way, in the May 6th “flash crash” bloodbath.
It’s legalized theft, on a mass scale. It is the reason Goldman made nearly $30 billion in their proprietary trading these past few years — while every one else lost money and the U.S. economy trashed around in the worst depression since the 1930s.
The Beast is located in a steel, nuclear-proof vault. Ten stories below street level. In the same room as the NYSE’s own computers. Wired directly into them, in fact. Most of the time this black box is a license for Goldman to print money. It never lost!
I’ve said this for years, but no one ever believed me until recently.
The stock market is rigged. Crooked to the core. The big trading firms play with loaded dice.
But that does not mean you can’t beat them at their own game. If fact it is moments like these — with panic in the street and Wall Street in desperation, screwing everyone in sight – that the serious money can be made.
The stock market has always been a rigged game. But now a new super-computer has turned a sleazy criminal enterprise into global fraud. This doomsday device will end up destroying its own creators.
High-Frequency-Trading (HFT) super-computers, like the Beast, are able to find out the highest price traders will pay in a millisecond. They then extort that full amount millions of times over, to maximize profits. This has nothing to do with efficiency or innovation. It is about stealing as much of your money as they can.
The way they carry off this scam is beyond belief. The deep-pocket bank/brokerages actually pay the NYSE and the NASDAQ hundreds of millions of dollars each year. In return, the NYSE and NASDAQ connect them to their own computers ON THE FLOOR OF THE EXCHANGES. This lets them shave off critical milliseconds — after they’ve gotten a first peak at incoming trades.
It boils down to this. HFT lets Goldman see other people’s orders ahead of time. Before the NYSE or NASDAQ executes these trades. Goldman’s supercomputers are so fast, they can then trade in front of the rest of the market.
It’s called front-running. It goes on every day right under the nose of SEC head Mary Schapiro. They know it and they let it happen!
“Nearly everyone on Wall Street is wondering how hedge funds and large banks like Goldman Sachs are making so much money so soon after the financial system nearly collapsed,” said the New York Times. “High-frequency trading is one answer. High-frequency trading systems are so fast they can outsmart or outrun other investors, humans and computers alike.”
“This kind of unfair access seriously compromises the integrity of our markets and creates a two-tiered system where a privileged group of insiders receives preferential treatment, depriving others of a fair price for their transactions,” wrote Sen. Charles Schumer to the SEC.
HFT computers learn every sell order that comes in. Every buy order. Because they are faster than all other computers, they front-run the market.
Goldman Sachs disclosed recently that it had 46 “$100 million trading days” in the second quarter of 2009. A record number. No one has done so well in the history of trading. How is this possible?
The U.S. economy is in its biggest downturn since the Great Depression. Banks and brokers are hiding more losses than ever on their derivatives books. Merger and acquisition volume is way down. So are IPO’s. So it seems bizarre that investment banks like Goldman had record quarters.
Now you know the secret. They are skimming the cream off of U.S. trading activity. Billions of times each day.
Ordinarily, a buyer and a seller show up on the floor. A specialist determines a price that satisfies buyer and seller. That’s the market price. If there are too many sellers and not enough buyers, the specialist lowers the price until buyers and sellers agree.
Goldman throws a fatal monkey wrench into that. Before the market price can be made, Goldman electronically floods the specialist with thousands and thousands of orders. In essence, they commandeer the trade. That lets them siphon off nickels and dimes for themselves.
Until a few years ago, Goldman was just an investment bank. But in 2008 Goldman magically transformed itself into a bank holding company. One of the benefits of having ex-Goldman executives fill nearly every key economic/financial position in government. They wired the game with their own people in key government jobs. Yet Goldman still remained an investment bank.
Now Goldman can borrow massive amounts of money from the Fed -– at virtually 0% interest. The lowest rates in the world. With The Beast, it uses this money to front-run every stock that trades. Simply because it pays the exchanges to let it see everyone’s trades, before they can make them.
So you understand: Goldman gets to speculate with your tax money, and pay nothing for that money. They get to rig the game against you and steal from you. If, or better put when they lose, government will bail them out.
Front running with HFT has become Wall Street’s principal business. The primary force driving most volume on exchanges. They are losing their asses on their derivatives. But The Beast lets Wall Street manipulate markets – both for financial and political gain.
How? Because HFTs operate on a massive scale. They account for 70%-to-80% of all trades. THEY set the overall market direction. Without any fundamental or even technical reason. And they sucker retail investors into a rising market. Even though it has nothing to do with “green shoots” or the false “recovery.”
High-frequency trading explains why activity on the nation’s stock exchanges has exploded. Average daily volume has nearly tripled since 2005, according to data from the NYSE. A handful of high-frequency traders (Goldman Sachs) now account for well more than half of all trades.
“This is where all the money is getting made,” said William H. Donaldson, former chairman and chief executive of the New York Stock Exchange and today an adviser to a big hedge fund. “If an individual investor doesn’t have the means to keep up, they’re at a huge disadvantage.”
Nick Guarino
nickguarino.com
He goes on to say...
Think of the tightening terms that can be forced on us. The impoverishment of the masses. No magic bullet can save us. No inflationary bailout.
We are facing a depression. It will impoverish the masses, who are hopelessly in debt.
Pretty soon now, you will make half what you used to. You will have half what you used to have. Your taxes will be double what they are now. The good life you have known is going bye-bye. Unless you embrace what I am telling you.
Dollars will be harder and harder to come by. Your debt burden will be bigger and harder to pay.
We know how you can avoid all this. We have the right conservative recommendations, that will help you save your wealth. We also have proven speculative trades. They could make you a fortune, as everyone else is losing theirs.
First the raging fire of deflation claimed the U.S. homeowner. Then it spread to the biggest American banks. Then our major corporations.
Now it is claiming entire countries. The depression it brings is changing the map of the earth. Just like every depression in history has.
The rules of making money -– of just keeping your wealth — have changed once again. Learn the new ways, learn the new world order, or get wiped out with everyone else.
Look around you. A whole lot of people have got it wrong. They are paying a terrible price.
That does not have to happen to you. But you must learn the new rules of the game. Before it’s too late.
Want to know who will rule the world? Who will decide what your house is worth? How much you make, and what you can spend it on?
The IMF and the EU will. The hidden bankers behind them will. They already are Greece’s masters. They will soon bring down Spain and Italy.
And the biggest prize of all is in their cross hairs. The USA. Obama is not our savior. He is the man selling us out to the global bankers.
They run every nation that falls into their debt trap. With an iron fist of austerity. I call it abject poverty.
They are doing what Marx, Lenin, Stalin and Mao dreamed of, but failed to achieve. They are taking over the world. And without firing a shot. They are using the world’s massive debt, to turn the world into their debt slaves.
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The game is beyond rigged and we can only hope someone like Ron Paul and his finance committee can outlaw this crap! Cause you know the FED is using this system as well; since they are partners in crime with Goldman...
Remember rigged games can go both ways; with the right event they will cause the biggest crash we have ever seen! Quants have developed the software; and just like LTCM it can all self destruct...
Read his Beast article; it is the best I have read about the ongoing!
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