Archive for the 'Wall Street' Category

Rise of the Algos – Knight Capital and the Inevitable Catastrophic HFT Market Meltdown

By mw | Related entries in Bad Decisions, Banks, News, Regulations, Wall Street, WTF?

A High Frequency Trading proprietary algorithm crafted by highly compensated brains-on-sticks and nurtured in the bowels of an investment bank escaped into the wild. From its carefully co-located massively parallel high speed trading computer it emerged to wreak havoc on the financial markets. In this case, it was a happy ending. The algo turned on its master and sucked the very life blood out of the firm that deployed it.Once Knight Capital’s algo was identifed as the culprit, the public company’s stock was slashed by 1/3 – a $300 million market cap haircut decapitation. That was Wednesday before we knew how much the algo lost on the trades. On Thursday morning KCG’s stock was slashed in half again when the trading loss was being reported at $440 Million. The incident is yet another lights-flashing, klaxon-blaring warning signal that competing HFT algorithms operating with the speed, size and complexity that are commonplace today cannot be adequately regulated, tested, or managed. Their interactions with each other cannot even be fully understood or predicted.

August 3rd, 2012 | Permalink| 14 Comments »

How Unethical Are Wealthy People? (Infographic)

By Greg Voakes | Related entries in Taxes, Transparency, unemployment, Wall Street, WTF?

According to this Infographic, the behavioral patterns of the wealthy appear to be quite elitist and entitled. The 1% believe that they are an acception to the rule, which causes a lot of social justice issues in the US. Mo’ money, mo’ problems is the title of this illustrated data set, including a study conducted […]

March 15th, 2012 | Permalink| 23 Comments »

Occupy Wall Street: The Clinical Psychology of Political Movements

By Greg Voakes | Related entries in Colorado, Taxes, Wall Street

Written By Luke Walker Despite the many unified voices of discontent, echoing from streets wherever the ‘Occupy’ protests persist, in cities all over the world, the question of whether a clear message has been made is still debatable. So, what exactly is the clinical psychology of the ‘Occupy’ movement? Is there a unified message? Does […]

November 10th, 2011 | Permalink| 6 Comments »

SHOCK: Goldman Sachs Fined Half A Billion By S.E.C.

By Justin Gardner | Related entries in Business, Economy, Law, Money, Wall Street

The title says it all, but here’s a bit more detail… From NY Times: Goldman Sachs has agreed to pay $550 million to the Securities and Exchange Commission, one of the largest penalties ever paid by a Wall Street firm, to settle charges of securities fraud linked to mortgage investments. The S.E.C. filed a lawsuit […]

July 15th, 2010 | Permalink| 4 Comments »

What In The Hell Happened Yesterday On Wall Street?

By Justin Gardner | Related entries in Economy, Money, Stocks, The World, Transparency, Wall Street

Human error? Computer error? Greece? Spain? China? WHAT IN THE HELL IS GOING ON?!?!?! Wall Street Journal tries to sort out the mess… A bad day in the financial markets was made worse by an apparent trading glitch, leaving traders and investors nervous and scratching their heads over how a mistake could send the Dow […]

May 7th, 2010 | Permalink| 8 Comments »

The Credit Crisis Explained With Motion Graphics

By Justin Gardner | Related entries in Economy, Money, Video, Wall Street

This nifty little video provides a good breakdown of what went down and why. Basically, it boils down to what we all suspected: grossly irresponsible lending brought about by deregulation. It seems so obvious in retrospect. (h/t: The Crisis of Credit) Tweet

June 12th, 2009 | Permalink| 14 Comments »

Greed vs. Stupidity

By Alan Stewart Carl | Related entries in Culture, Economy, recession, Wall Street

So, what caused the current financial crisis? No, not the specific events but rather the underlying cause, the cultural fault. David Brooks believes there are two competing schools of thought. It’s the greed theory vs. the stupidity theory. Brooks begins with the greed theory: [T]he U.S. financial crisis is a bigger version of the crises […]

April 3rd, 2009 | Permalink| 8 Comments »

Geithner Wants Broader Powers To Seize Non-Banks

By Justin Gardner | Related entries in Bailouts, Business, Money, Regulations, The World, Transparency, Wall Street

And after the AIG mess, I say we give it to him. How we allowed one company to take down the entire system still feels unreal to me. How on earth could we allow that to go down? Crazy, crazy, crazy. But it did happen and we are suffering massive fallout as a result, so […]

March 24th, 2009 | Permalink| 44 Comments »

Paul Krugman And Donald Marron Debate Geithner’s Plan

By Justin Gardner | Related entries in Banks, Barack, Economy, Money, Video, Wall Street

Krugman doesn’t like it because it doesn’t punish the behavior that got us into this mess in the first place. And while I have a soft spot in my heart for that line of reasoning, his idea of nationalizing the banks is a non-starter. I wish he realized that, but nonetheless. Marron makes the point […]

March 24th, 2009 | Permalink| 2 Comments »

ANP (VIDEO): Fed Lends Two Trillion Without Oversight

By American News Project | Related entries in Bad Decisions, Bailouts, Bloomberg, Congress, D.C., Dodd, Economic recovery, Economy, Film, Florida, United States, Wall Street, Washington, WTF?

If you thought $700 billion was a lot of money, well.. It is. But $2 trillion is.. ridiculous. This is Danielle Ivory from ANP. Congress and the new administration have been focusing their attention on strengthening oversight for the Treasury’s TARP program, but meanwhile few are paying any attention to the Federal Reserve. Since September, […]

January 30th, 2009 | Permalink| No Comments »