On a day when I’ve already written for nearly four-and-a-half hours – on this morning’s commentary alone – with the prospect of an equally angry, aggressive RANT this afternoon as we conclude day two of the “three days of terror,” I’d like to stamp closure on the demise of the CRIMINALS at Knight Capital Group.
Given that I referred to it yesterday afternoon and this morning already, there’s no need to “intro” with my March 26th RANT, “GOING BATS!” – in which I reiterated my belief that murderous, fraudulently executed ALGORITHMS were DESTROYING markets, as much as government intervention. Of course, given that Goldman Sachs (20% market share of ALL High Frequency trading) and the PPT itself are the largest market participants, it’s safe to say the majority of “algos” are either government initiated or funded. Some – like those attacking mining shares and the ETFs GLD and SLV – are utilized solely to manipulate prices; while others were created simply to STEAL YOUR MONEY.
This morning, I wrote the following of my experience over a decade of stock trading, before abandoning equities FOREVER – with the vile scum at Knight Capital…
I know this disgusting firm ALL TOO WELL. From having traded countless small-cap stocks in prior lives, there is NO DOUBT this ‘esteemed’ company was one of the biggest stock manipulators on Earth; and thus, outside the inevitable bankruptcies of Goldman Sachs and JP Morgan – NOTHING will make me happier than these SCUM reduced to rubble.
…followed by the following commentary from this morning…
IMMEDIATELY afterwards, the firm announced it was “pursuing strategic alternatives” – in other words, BANKRUPTCY; and that was it for the stock – FOREVER. I cannot begin to speak of the catastrophic, irreparable long-term implications of this bankruptcy – to equity markets WORLDWIDE – but will certainly try in tomorrow’s RANT.
Yes, Knight Capital – or as stock traders are more cognizant of, its trading moniker, “NITE.” By far, the largest market maker of small cap stocks, and in recent years a MAJOR player in the FAR MORE criminal world of High Frequency Trading. Literally, a firm representing the demise of the once great American empire. Too bad it didn’t create complex derivatives as well, as it could then claim to be involved in every major criminal operation on Wall Street!
Then again, it won’t get the chance, as it will likely be BANKRUPT before the ink is dry on this RANT. All one needs to do is watch this video depicting how the firm lost $440 million in one day…
…or in reality, FAR MORE, but for the arbitrary NYSE decision to cancel trades in the stocks NITE’s “rogue ALGOS” moved more than 30%…
This RANT is titled “NITE JUSTICE,” intimating some sort of positive result for society. Unfortunately, nothing could be more incorrect. I highly doubt NITE’s executives will be prosecuted for their crimes – er, “mistakes” – but you can bet the investing public will suffer greatly. As NITE was the largest market maker of small-cap stocks, the “liquidity vacuum” that will form under these issues will be louder than Ross Perot’s “giant sucking sound.” For investors holding such stocks, say goodnight to your money, and for the company’s themselves, good luck EVER getting funding again. In other words, care of more Wall Street crime, the PUBLIC is most negatively impacted.
I’m THRILLED that the reasons for avoiding stocks have grown exponentially overnight, sucking whatever remaining capital is left out of the fraudulent PAPER financial markets. That is, after, Global Meltdown III - i.e., “the Big One” – takes care of the rest. However, yet again, society as a whole has decidedly LOST to a cadre of CRIMINAL bankers!
PROTECT YOURSELF, and do it NOW!
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