IT CAN ONLY END IN A COLLAPSE: HFT & THE EXCHANGES
BY ANN BARNHARDT
OCTOBER 2, AD 2012
Via a ZeroHedge piece, the exchanges, led by the Chicago Mercantile Exchange with the New York Stock Exchange and NASDAQ right behind, will never, ever, ever do ANYTHING to stop the High Frequency Trading (computers trading in and out in milliseconds which have destroyed the markets) because they are making a massive percentage of their money off of the HFT trades, most of which are illegal, made possible by illegal order placement and illegal under-margining by HFT firms.
Karl Denninger laid it all out in an excellent post earlier this morning,HFT: STILL DANCING AROUND THE ISSUE
With each passing day as more and more human beings realize that the markets are not only dead from a Rule of Law perspective, but also because the HFTs are prison raping anyone and everyone they can and the Exchanges happily facilitate and encourage this raping of the Muppets (that’s you), the percentage of the Exchanges’ revenue that is coming from HFT is increasing on an exponential curve.
Bottom line: The HFTs are, for all intents and purposes, all that the Exchanges have left, and they will cling to them, protect them and enable them until the system finally goes no-bid and implodes instantly and catastrophically because these people are all evil, batshit crazy psychopaths. Terry Duffy will never surrender for exactly the same reason Hitler didn’t surrender.
If you are still in or exposed to the markets in any way, you are basically swinging on a star that is going to go supernova and then implode into a black hole AT ANY MOMENT. There is no going back. The outcome is an absolute mathematical and metaphysical certainty. You can’t stop a supernova. The Exchanges can not be saved. You have to get out and get as far away from the blast as possible, and then just hope that you don’t get sucked into the resulting black hole anyway.
And in case you are new to this website, the “black hole” will be the nationalizing of all retirement accounts and pensions, converting all instruments and assets to U.S. Treasury paper, which you will never, ever see again, because U.S. Treasury paper is JUNK, guaranteed to default. Guys, this is all part of the plan. The putsch regime in Washington is LOVING EVERY SECOND OF THIS, and have told the SEC, CFTC and DOJ to protect both the Exchanges and the HFT paradigm.
Here is the chart showing the massive reliance on HFT for revenue by exchange courtesy of Raymond James, and below is an extremely informative interview with Mark Cuban, who isn’t my favorite person, but he is spot-on and makes many outstanding points in this interview.