Unconscionable Manipulation in the Stock Market

 

Last week casino owner and billionaire Steve Wynn admitted something that few people on the inside are every willing to acknowledge. He clearly stated that stock market can be manipulated using the very loopholes that we identified at work in the 2008 collapse, including naked short selling, dark pools, and high-frequency trading. Here are some quotes from his recent conference call:

“…the exchanges don’t enforce the rules of naked shorts. So, I mean, it’s unconscionable manipulation of the stock that occurs. They open up every morning, and the high-frequency traders in the shorts have a ball selling shares, and then value buyers step in the afternoon and they cover the shorts. I mean, it’s regular casino activity.” The company currently has about 14 million shares short, or almost one-quarter of total float.

Fed official warns ‘flash crash’ could be repeated

Please see the source for the video.

 

A senior Federal Reserve official has warned that last autumn’s “flash crash” in US Treasurys could happen again due to the changing nature of the US government debt market, and urged banks, investors and exchanges to adopt a revised set of guidelines in response to the turmoil.

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However, Simon Potter, executive vice-president of the Federal Reserve Bank of New York, warned in a speech on Monday that the unintended consequences of regulatory and market changes could mean that “that sharp intraday price moves become more common” in the future.

Russia tried to learn how to use high-speed trading to rock market, U.S. says

The naive, while only partially correct, will be quick to blame ‘evil bankers’, whereas the wise will know that every facet of America has been infiltrated and redirected. Be it the military, CIA, FBI, NSA, the White House, U.S. Congress, U.S. Senate, finance sector, so on and so forth. This is why everyday people see ‘evil bankers’ but don’t know how it got to be. The same in politics: A vote for Jeb Bush in 2016 will be the same as Obama in 2008 and 2012, as he was for George W. Bush in 2000 and 2004. Welcome to the USSA, where it’s a controlled one party system as in today’s resurrected Soviet Union.

The year is 2015 and America is still being sold New Lies for Old.

WASHINGTON (MarketWatch) — Russia sought to use spies to get more information about high-frequency trading in a potential bid to destabilize the market, according to a court document released by the U.S. government on Monday.

The U.S. government on Monday made one arrest and charged two other diplomats with spying on behalf of Russia.

Financial Markets Are at Risk of a ‘Big Data’ Crash

Regulators and investors are struggling to meet the challenges posed by high-frequency trading. This ultra-fast, computerized segment of finance now accounts for most trades. HFT also contributed to the “flash crash,” the sudden, vertiginous fall in the Dow Jones Industrial Average in May 2010, according to U.S. regulators. However, the HFT of today is very different to that of three years ago. This is because of “big data.”