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This Game is so Rigged

This Game is so Rigged
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  • The Fed is "better informed than anybody else," RBS strategist William O'Donnell advises; its "vast and highly accomplished staff in Washington exceeds anything else the Street can bring... go with the strength, go with the staff and go with the Fed." Is this is the same Fed that urged adoption of ARMs on the eve of short rates going from 1% to 5%, failed to see the housing bubble and said "subprime was contained"?  [View news story]
    Yes, but in the Fed members' defense; they get drivers, towncars and terrific health insurance. You'd cling to the ideology too.

    Also, let's not forget that they're crooked (like the Fed member who had to resign because he bought GS stock before the bailout was announced, but after he already knew it was coming).

    They can all rot in hell.
    Nov 29 06:35 PM | 18 Likes Like |Link to Comment
  • Shoppers swarmed to Black Friday sales and retailers exuded a rare optimism, but retail spending rose only 0.3% from the previous year, to $10.69B from $10.66B, as a more discriminating public shopped more carefully for discounts and bought more goods online.  [View news story]
    Nov 28 12:08 PM | 4 Likes Like |Link to Comment
  • The Treasury sold 358M shares of General Motors (GM) in the automaker's IPO, raising $11.8B and reducing its stake to just under 37% - but if underwriters exercise options to cover overallotment, the total Treasury sale will be 412M shares for $13.6B and a stake reduction to 33.3%. The agency now reportedly plans to reduce - but not eliminate - its oversight role, and it agreed to a six-month lockup, which will dictate whether it will break even on a $40B investment.  [View news story]
    What about the $60Bil that the gov wiped out from the bond holders (who deserved the liquidation rights)?? Break even my ass.
    Nov 17 08:08 PM | 8 Likes Like |Link to Comment
  • Tech stocks drove off the cliff in 2000. Real estate went poof in 2007. Financial stocks melted down in 2008. So what’s the next bubble to burst? Short selling, Gregg Easterbrook says.  [View news story]
    Stupid argument, and wrong.
    Jul 22 06:32 PM | 2 Likes Like |Link to Comment
  • EU officials' overt confidence that their countries' banks will easily pass stress tests has left analysts anything but reassured. "All banks passing the tests would mean the tests were useless," London economist Marie Diron says.  [View news story]
    They'll throw a couple of banks to the wolves. Otherwise there's no "credibility". I'd guess non-establishment banks that are already owned by the States. For instance, Hypo in Germany and some Spanish bank in the Basque region that might be accused/involved in funding separatists.
    Jul 22 10:20 AM | Likes Like |Link to Comment
  • Don't believe all the hype - we needed those bailouts! Becky Quick says we've already forgotten about the fall 2008 fear and why the government had to step in, and "the armchair-quarterback lawmakers and candidates who are now second-guessing these moves are dangerous."  [View news story]
    "We needed those bailouts," she said; while wiping the Oracle of Omaha's Kool-aid from her chin.

    What she meant to say was, "all my friends at GE and Berkshire needed that bailout."
    Jul 16 08:15 PM | 16 Likes Like |Link to Comment
  • AIG agrees to pay $725M to settle a securities fraud lawsuit led by three Ohio public pension funds, in one of the largest class action settlements in U.S. history.  [View news story]
    This is such BS. Now every other State AG needs to sue to get the Federal Money, which we all pay for anyway. Should've let them bankrupt the world and let the chips fall. Would've changed my children's lives for the better.
    Jul 16 08:08 PM | Likes Like |Link to Comment
  • The world isn't any safer now than it was two weeks ago, so John Crudele is skeptical that improved stock prices mean anything more than professional traders pushing stocks on low volume. This week is options expiration - "a particularly good week for market manipulation," he says. "Stocks have been benefiting from nothing more than the calendar for a little over a week."  [View news story]
    Been saying that since April '09 also. 10 cent bid ask spread, no trade, bid and ask move up a nickle simultaneously without a share trading.

    There are ZERO non-algo buyers. Any volume and the whole ponzi collapses.
    Jun 15 07:37 PM | 2 Likes Like |Link to Comment
  • The robo-market blew a fuse and must be re-wired, Colin Barr writes. Among the suggestions for minimizing abusive automated trading: widen out bid-ask spreads, slap a fee on traders who cancel trades, and change the practice of paying traders for providing liquidity. "We need to get all these fast-trading jokers out of here."  [View news story]
    So would the Squid only get to trade once per day? Or would it only affect the normal people. How about JPM? One trade per day? Or are they gonna have to pretend they're doing it for clients.

    Zero chance the one trade per day happens.

    Let's stick to a different approach. Perhaps civil disobedience.

    We will not invest in your success by any measure. Neither by effort, nor finance, nor compliance, nor belief.
    -- This Game is Rigged
    May 9 12:26 AM | Likes Like |Link to Comment
  • The robo-market blew a fuse and must be re-wired, Colin Barr writes. Among the suggestions for minimizing abusive automated trading: widen out bid-ask spreads, slap a fee on traders who cancel trades, and change the practice of paying traders for providing liquidity. "We need to get all these fast-trading jokers out of here."  [View news story]
    Nobody complains when these robots push the market to levels that are overvalued beyond any reason. What was it, 8 straight weeks with 30 something straight Mondays of up moves on ZERO volume. High Frequency Trading provides nothing (other than an algorithmic push higher on no volume). When you want to sell, they disappear.

    Nothing needs to be rewired. The market is overvalued by 50% anyway. REITs at 4.5 times book? Really? And book is overstated by 100%. During good times they shouldn't trade at more than 1.5 times.

    May 7 07:22 PM | 14 Likes Like |Link to Comment
  • George Washington runs down the six theories in vogue for why stocks have rallied so, including: dumb money following CNBC advice, HFT robots/algos buying futures after hours, and (if you're with Karl Denninger) systemic fraud in overvaluing assets.  [View news story]
    The Fed most definitely bought S&P futures last March (the day after Obama said "now is a good time to buy stocks". $60 - 100 billion notional - premium was cheap though - $50MM - $100MM.

    Since then, the algos have been able to arbitrage the dollar carry trade. When the dollar is week, they borrow dollars, and buy stocks. When the dollar strengthens, they reverse the trade, sell the stocks and pay back their dollar loans.

    Since "nobody" is really in the market anymore except GS, JPM and Renaissance - and it's in no one's benefit for the market to decline - the program is to push the market up on low volume (costing less). When real selling comes in, the big firms have no choice but to front run, volume increases and stocks decline.

    Unless real selling (fear) occurs or the dollar strengthens, one can expect the market to creep up on a daily basis - forever.
    Mar 9 08:57 PM | 2 Likes Like |Link to Comment
  • Manhattan's 'Superstar' Real Estate: Down 21% [View article]
    But SLG was able, due to their amazing management and superior financial connections, to refinance a 2002 $625MM loan for $475MM.
    Clearly this marks a confidence in the bottom for NYC real estate. Imagine if they only needed to put up another $150MM per property as their loans came due. Their stock might be worth as much as $1.25 per share. On the other hand, at $50 it looks "slightly" overvalued.
    Jan 18 10:14 PM | 3 Likes Like |Link to Comment
  • If poor regulation of non-traditional mortgage products - and not monetary policy - is to blame for the housing bubble, then perhaps Mr. Bernanke would care to explain how the current system missed the "protracted deterioration in mortgage underwriting standards" despite the warnings, and why the new regulatory structure will do any better?  [View news story]
    Yeah. This just in...Bernanke is lying to save Greenspan, so that Summers will save him. Historical legacy, it's all they care about. Same as Salinas lies to save de la Madrid to lie and save Portillo. It's all bullshit.
    Jan 3 11:34 PM | Likes Like |Link to Comment
  • My 10 Predictions for 2010 [View article]
    Well, on the west coast, we're freezing. Global Warming isn't a hoax, it's a religion. I guess, in 2020, when Florida isn't underwater, you'll say, "it's because of the work/praying we've been doing."

    On Dec 30 12:07 AM mrxg4 wrote:

    > "The threat of global warming is also greatly exaggerated by the
    > politicians and media. People still remember in the 1970s, everyone
    > was told by the politicians and media that the earth temperature
    > was dropping and mankind was back to the ice age. Only 3 decades
    > later, we are told the opposite. The reality is that human beings
    > don’t have control and can’t do anything about earth’s temperature
    > either cold or warm, up or down. It is just another example of hypocrisy
    > and political correctness at work, wasting tons of money along the
    > way."
    > I'm baffled how logical individuals with access to an incredible
    > amount of data can still believe that global warming is merely a
    > hoax.
    Dec 30 12:31 AM | 5 Likes Like |Link to Comment
  • Why Goldman Could Go Short Mortgages [View article]
    I believe it would be beneficial to everyone if we stopped calling GS by name, and started calling them The Squid (or Vampire Squid if you so choose). That's the kind of viral PR that could eventually hurt.
    Dec 26 06:44 PM | 1 Like Like |Link to Comment