[1045] The Truth About Markets – New Zealand – 08 July 2009

July 8th, 2009 by stacyherbert

Stacy Summary:  The Truth About Markets New Zealand where Max lets you in on a little secret about our two bands . . . lol.

For more download and listening options visit Archive dot org

Tags:   32 Comments

32 responses so far ↓

  • Mike2liverpool
    Jul 8, 2009 at 2:03 am

    Morning Stacy
    Ok, lets hear what your got to say in this weeks show.
    BTW Do you know any french women?
    Mike

  • Bill Stewart
    Jul 8, 2009 at 2:20 am

    @Mike2liverpool@

    I have just the Canadian bird for you

    1. She does look like Max’s Shela, drunk anyway…
    2. She is easy and not married
    3. She has had French classes or I assume she has
    4. She is not an American Imperialist
    5. If the Pound crashes and the CAD does not — she will be richer than you…
    6. She lives in a Port City, not inland like MK’s bird

    http://www.utherverse.com/net/profile/view_profile.aspx?MemberID=92063028

    http://www.flickr.com/photos/cutecanadianblond/

    Keep one’s relationships in the Empire, as no good can come from this totally corrupt former colony.

  • Max Power
    Jul 8, 2009 at 2:23 am

    Special report: A big month for the Uridashi Tsunami

    http://www.interest.co.nz/ratesblog/index.php/2009/07/08/special-report-a-big-month-for-the-uridashi-tsunami/

    Bernard Hickey delivers a special report in association with ASB on July’s monster maturities of Uridashi bonds that is likely to pressure the New Zealand dollar lower.

  • Bill Stewart
    Jul 8, 2009 at 2:25 am

    [Typo correction]

    Keep one’s relationships in the Empire, as no good can come from this totally corrupt former colony — America.

    Canada was the colony created when the US split off in 1788.

  • Mike2liverpool
    Jul 8, 2009 at 2:38 am

    Bill
    Its too far to travel!

    Max, i will pay NOT to sing, i heard you SING!!!!!
    Mike

  • Phil
    Jul 8, 2009 at 2:43 am

    @Source code ..

    Stacy, yes you’re right, stealing – “and using” – the source is no big deal as the work required to set up the infrastructure ( hardware AND software ) in order to actually “use” it would be almost impossible within realistic parameters.
    ( One well known Investment Bank I worked at had for example over 200 virtual servers running on over 20 of the biggest Enterprise machines ( 24 CPUs each ) each with 64 GB main memory )

    I think their bigger worry was that someone could analyze the code and maybe bring a criminal case against them .. IMO ! Considering the “Customer Agreement” recently published by ZeroHedge, such a possibility is more than likely IMO.

    ( I just love ZeroHedge BTW )

    As posted earlier, if the NYSE stops their PT, it’ll be interesting to compare average weekly volumes of the NYSE stocks on a before/after basis .

  • Phil
    Jul 8, 2009 at 2:50 am

    @Max .. good points in the last few minutes.

    More secrecy …. Patriots rejoice !

    IMO, it’s all just another nail in the coffin of the Anglo/Saxon Bankster ponzi-scheme ! The USA/UK is – thank G*d – not the whole world.

  • Danny
    Jul 8, 2009 at 2:56 am

    “Another false flag by Goldman”
    If the result is that Goldman doesn’t give out its trade programming numbers I think Max could be right. Aleynikov another patsy?

    @Stacy
    I want a poulet cuit mp3!! and the one where max goes “turn around pick up a bail of cotton, ohhhh, my country sold me out to the Chinese!” LOL :)

  • Mother Earth
    Jul 8, 2009 at 3:16 am

    @Stacey What I don’t get is that quant trade can be more than 50%, shouldn’t there be a real buyer/seller on the other end at all times? Also, what trader can keep up with the micro purchases and sales. Or are quant trades meant to (legitimately) fleece investment funds (quant funds) ? Who would want to participate in that? This feeds my suspicion its just for show.

    Proximity has to do with latency as well as system reliability. You see the same in online multi player game platforms (people close to the backbone have the advantage). I guess its fairly easy to track arbitrage opportunities if you have high frequency data (f.i. if you can signal the acceleration of trading volume you could front run, get out when you see deceleration)

    I’m visitng the farm the 14th august, maybe we can have a G-what happen? ;-)

    btw. French woman are pretty awsome, I reccomend..

    @Bill Nice girl, but no Karma (rates 0)

  • stacyherbert
    Jul 8, 2009 at 3:26 am

    @Mother Earth – the quant is a computer that is trading in microseconds against sometimes a real buyer or seller

  • Youri Carma
    Jul 8, 2009 at 3:29 am

    Don’t think hardware is a problem cause characters don’t use up much space and terrabyte harddisks are very cheap nowadays. 1,5 Terrabyte for € 100,-. The distance to your Hub does matter especially if you are on ASDL (=Normal phoneline upgraded). If you are using Glassfiber cable, which most big compagnies use it’s a different story.

    Currency: Dollar drifts lower – New Zealand Herald http://url4.eu/4SU7

  • Phil
    Jul 8, 2009 at 3:33 am

    @Mother Earth .. “quants”

    A “quant” is the name given to the programmer-mathematicians that design these instruments.

    Richard Bookstaber’s book “A Demon of our own Design” goes into detail ( and mentions my old software development department and the special programming-language we used).

  • Phil
    Jul 8, 2009 at 3:34 am

    @Youri .. “Terrabytes are cheap”

    Not in “RAM” they’re not !
    Most of this RT work is done purely in RAM .. disk dumps ( RAM to disk ) are done every 15 minutes.
    FYI

  • Mr Supergeek
    Jul 8, 2009 at 3:41 am

    @Stacy
    Am I still worried…Yeah…..”These people deal in sub seconds anything less than 50 milli seconds is a huge amount of time anything over that and your a dinosaur in the buisness these days” joe saluzzi.

  • Youri Carma
    Jul 8, 2009 at 3:48 am

    @Phil even RAM has become insanely cheap ans Solid state disks are getting cheaper every day. But even if it where expensive these guys make millions so, come on, they can afford it.

    Biggest problem is getting some split seconds gain on the distance to your Hub although I still wonder if it matters much if you are on glassfiber cable which goes on lightspeed. And except for some aliens we can’t go any faster. The transformation of the data from glassfiber to the compagnies network will cost time so the best thing would be a computer directly on the glass fiber.

  • Mr Supergeek
    Jul 8, 2009 at 4:12 am

    Good show…..Cheers for the download.

  • Youri Carma
    Jul 8, 2009 at 4:32 am

    Goldman Sachs Gangster Paradise: SPECIAL by me http://tinyurl.com/lt7nzv

  • Phil
    Jul 8, 2009 at 4:42 am

    @Youri .. “even RAM has become insanely cheap”

    You have obviously never worked on big iron.
    The PC prices have nothing to do with the prices IBM and Sun still charge ! The last smallish upgrade I witnessed on a mainframe at an investment bank was 10 Mio Euros.
    You effectively pay “protection money” .. and has nothing to to with “market prices” , more to do with hooking you on proprietry hardware ! .. although times may change very soon.

    BTW .. yes ,the hub-connection time plays a big role.

    @ “Yes they can afford it ”

    To get the simplest and smallest upgrade to a big iron installation costs millions and months of committees and meetings. Also, in manpower … in that an organisation that runs 24/7 globally goes through loads of UATs ( User Acceptance Tests ) until the final upgrade day arrives.

    It’s NOT like just upgrading your PC !
    ;-)

  • Fibon1123
    Jul 8, 2009 at 4:54 am

    I like this combination:

    Play these two together-
    ——————————-
    http://vids.myspace.com/index.cfm?fuseaction=vids.individual&VideoID=23992372

    http://www.usdebtclock.org/
    —————————————–
    Then if you don’t believe that the new debt still does not matter watch these videos. You cant beat a dead horse, in for a penny in for a pound. The good news is this system has to be reseat against something, what indeed? mmmm what indeed lol?

    http://www.youtube.com/watch?v=F-QA2rkpBSY

  • Phil
    Jul 8, 2009 at 5:07 am

    @Fibon1123 .. Your last link on “understanding the Exponential Function”

    Fibonacci … that link is a good video for people to watch ( saw it years ago ). Explains why our planet cannot go on like this !

  • Palantíri
    Jul 8, 2009 at 7:40 am

    Thanks for the show, fascinating talk.

    Why isn’t there (that I’ve hear of yet) other broker firms or other companies dealing with stock exchange protesting against this computer trade system?

  • Photoception
    Jul 8, 2009 at 8:14 am

    I think you have the numbers mixed stacy. 50% of volume is program trading, 70% is Goldman.

    http://www.nyse.com/press/1246962735805.html

    revised chart:

    http://www.nyse.com/pdfs/PT0622-0629.pdf

  • Adam
    Jul 8, 2009 at 8:15 am

    The Cold War in high frequency trading
    http://ftalphaville.ft.com/blog/2009/07/08/60761/the-cold-war-in-high-frequency-trading

    This April 2009 quote from Rick Bookstaber, with its overtones of Cold War mutually-assured destruction, seems eerily prophetic given recent events involving the alleged theft of Goldman Sachs’ proprietary high-frequency trading code by a programmer of Russian origin…

  • Phil
    Jul 8, 2009 at 8:22 am

    Adam .. Rick Bookstaber

    He was one of the inventors of these WMFDs.
    He also warned retail traders/investors in his book ( see above ) NOT to trade single stocks due to BigMoney manipulation.
    Trade only the Indices was his advice !

  • Fibon1123
    Jul 8, 2009 at 9:22 am

    Is this true? Iv stumbled on this?
    The IRS is a privately owned company based out of Puerto Rico
    It explains why down the page!

    http://www.abovetopsecret.com/forum/thread478832/pg1

    You just could not make this up could you and if you did the publisher would say, nice story mate just its well unbelievable!
    Is the truth stranger than fiction?

  • Phil
    Jul 8, 2009 at 9:38 am

    @Fibon1123 .. good links.

    IIRC, even Ron Paul is saying “get rid of the IRS” !
    … because it is not constitutional !

    BTW, Switzerland is right in refusing IMO. The US “demanding” … is infringing on Swiss sovereignty IMO.

  • Neo-Fuedal Casino Gulag Plantation Economy Minion
    Jul 8, 2009 at 10:05 am

    You absolutely have to starve the populace of liquidity in order to force the sale of the plum assets for next to nothing. As I’ve said before, the real bargains don’t happen until the populace has been literally starving for a decade. We aren’t even close. Of course, we saw some early fire sales in the banking sector, when the largest retail bank presence in the country was bought for a giveaway in a “crisis”. Expect far more of these sorts of, “huh?” moments over the next few years, as the rhetoric is all about stimulus, but the reality is tightening.

    The way it was done in the depression was higher taxes, protectionist tariffs, and devaluation of the dollar, coupled with increasing margin requirements at banks (thereby draining circulation of yet more dollars) and the government hoarding tax revenues as opposed to redeploying them into circulation.

    Today, we have the Fed secretly, and for the first time in history, paying interest on deposits, thereby eliminating any real reason for banks to deploy capital, except maybe by investing in T-bills for a sweet risk-free arbitrage. The system is now set up to keep money out of circulation. It’s working, far as I can tell. Next come higher taxes, and then protectionist/nationalistic trade wars designed to strengthen domestic monopolies at the expense of free trade and general prosperity.

    Wouldn’t entirely surprise me if they made physical gold illegal again, although there isn’t much basis for doing so, and they can accomplish the destruction of commodities values much more effectively via derivatives, which is how it’s all done these days.

    So look for continued and rising unemployment, deflation in assets even as the Fed prints more money but the banks hoard it, tightening credit for the same reason, and the entire media/government apparatus to pretend to not understand what is happening, even though the government and its banking masters engineered it.

    And don’t hold your breath for any investigations into Bear or Lehman or Fanny or Freddy or Wachovia trading to ever surface, nor any into oil manipulation. That’s off limits, clearly.

    Pretty F-d up world, but there you have it.

  • sharon
    Jul 8, 2009 at 11:18 am

    @Fibon1123
    Re: IRS being a private company. This would not surprise me at all. Basically countries like the US and UK are in effect corporations. Here in the UK all police, law courts, councils, gov depts are corporations, I even heard that IBM is the parent company of the south west region of england. We’ve all been scammed basically. All laws (besides common law which covers the loss of anything) are based on statute law which is based on commercial law. This means that you must give your consent before any of the statute laws can be applied to you, ie. all statute law requires the consent of the governed. Crazy or what?!

  • Douglas
    Jul 8, 2009 at 11:51 am

    Teenage Jesus and the Jerks! When is Lydia Lunch coming onto one of your shows? I bet she still has that optimistic view.

  • Tofu Charlie
    Jul 8, 2009 at 4:55 pm

    Fun trivia about ChCh:

    The Dalai Lama refused to get off his plane in Christchurch because of the “bad vibes”…