There is a running discussion on whether or not it matters that 70% of the volume we are seeing every day is from automated, proprietary trading and algo’s.  Anecdotally, buyside customers are very quiet. Anecdotally, retail is quiet. The folks I talk to are not at cocktail parties on weekends talking about their latest stock tips. So this HFT gives the illusion of liquid markets. A buyside trader may want to concluse that if he/she had a million share order, it would get done tight, and with a highly predictable, and perhaps minimal impact, based on the volumepattern they now see. (more…)

Quote: Gordon Gekko: The richest one percent of this country owns half our country’s wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It’s bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out (more…)