Goldman's Doomsday Machine Stolen

Marcus_Halberstram:

This is turning out to be a real clusterfuck, this is the equivalent of Joe Pesci fucking Robert DeNiro's wife in Casino. If this was the Mafia, Goldman would have been put down already for making so many waves.

http://www.nytimes.com/2009/07/24/business/24trading.html?_r=1&hp

Powerful computers, some housed right next to the machines that drive marketplaces like the New York Stock Exchange, enable high-frequency traders to transmit millions of orders at lightning speed and, their detractors contend, reap billions at everyone else’s expense

This is so fucking stupid, this douche bag writer is pandering right into the layman's ignorance and distrust of anything he doesn't understand. As if a computer being in the same building as another computer, somewhat compromises the integrity of the system.

It is an interesting article though and does have some valid points.

I agree that sentence can be misconstrued. But the rest of the article is spot on, can anyone here really argue with anything stated here?

The slower traders began issuing buy orders. But rather than being shown to all potential sellers at the same time, some of those orders were most likely routed to a collection of high-frequency traders for just 30 milliseconds — 0.03 seconds — in what are known as flash orders. While markets are supposed to ensure transparency by showing orders to everyone simultaneously, a loophole in regulations allows marketplaces like Nasdaq to show traders some orders ahead of everyone else in exchange for a fee.

how is that transparent? liquidity is great, they should get paid the small fees for that but why do "flash orders" exist?

MMmonkey:

zerohedge.com

Proceed with caution if you're going to visit that site. The world is ending everyday over there.