Halloween's only three weeks away and we have a brand new witch to hunt. By now, everyone has heard of Waddell & Reed and how the Kansas City mutual fund is reason du jour for the end of capitalism and further legalizing of market manipulation.
As the story goes, on the afternoon of May 6, 2010 an algorithm propelled sell-off of $4.1 billion of futures contracts linked to the S&P 500 sent the market reeling. As with all good witch hunts, Waddell hasn't officially been named, but via leakage that would make the BP oil spill seem tame in comparison, we have our new villain.
I can hear the sound of Blankfein's cheeks stretching into a grin. It sounds like press on nails on a chalkboard.