Horrific Jobs report/gold rises/silver steady
Gold is the secret weapon in the worldwide financial war, Rickards tells King World News
| The Silver Platter Opportunity |
Jim Willie CB
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| Eric Hommelberg: A 2,000 Dow or $10,000 gold? |
US Taxpayers Just Paid $780 Million To Fund The Latest Greece Bailout Tranche
The IMF is delighted to announce that it just
approved a €3.2 billion disbursement of cash for Greece, its fifth, as
part of the €12 billion in money that Greece needs in order to continue
operating in the months f July and August. And just for what purpose
will this money be used, one may ask? Well, as explained a few weeks
ago, in Greek Math: €12 Billion In, €18.2 Billion Out the
entire amount will be promptly recycled by global financial
institutions in the form of debt maturities and interest payments,
which amount to €18.2 billion in the months of July and August. Simply
said ECB, EU and IMF money in, money owed to bankers out. The kicker:
17.09% of the money coming from the IMF, comes from, that's right dear
US taxpayer, you (and since 21% of the quota contributions allocated to
the IMF are deemed "non-usable", the actual number funded by the US is
likely much higher). But this plot has a bonus kicker: as we reported on Wednesday,
the actual Greek debt is no longer owed by European banks to the extent
it had been previously expected: a development that threatens to
scuttle the entire second Greek bailout plan as
currently proposed. So as the banks have been selling Greek debt, who
has been buying? Mostly hedge funds, such as everyone's favorite John
Paulson. So to recap: US taxpayers have just paid out about $780 million
of the $4.6 billion in order to fund interest owed to... hedge funds.
In a recent article Nanex has shown that quote stuffing can slow down the updating of series of stock prices, bids and asks. The article was less clear about why one might do that. There could be arbitraging opportunities. One of the first games these clowns got into was latency arbitrage. HFTer offers a number of shares for sale at one price, and at the first sign of interest, pulls all of the offers and resubmits them at a higher price. The latency comes into play because as another player send his orders in to fill HFTer, and these orders all find their ways to the market via differing routes, each of which has a different latency (lag time)--so instead of all arriving at once, they arrive singly, giving HFTer time to pull the rest of his bids....Saturating the quotes on individual lines will change the time lags (latency factor) during the intervals the quotes are generated. For Thor to work properly, it has to estimate by observation the precise lag between sending an order and having it arrive on each market. Randomly changing the lags for the different lines would confound RBC's (and others) attempts at ensuring all its orders arrive on all markets at the same time. And curiously all of this comes just days after the CQS decided to increase the cross-system capacity for quote stuffing in the market from 750,000 quotes per second to 1 million.... Almost as if someone is urgently trying to recreate the market instability that sent the Dow plunging by 1,000 points in seconds.
Remember one simple truth, 91.8% of ES Futures daily volume is attributed to day traders and computer algorithms. And since not one single person within that group uses macro data for their intraday trades then it is safe to say the market in the short term has little to do with pricing in macro economic data. Remember how the SPX peaked two months before the great recession actually began. That is not forward looking. Market participants are already analyzing today's afternoon rally as a sign that this market is resilient, that the economy is still headed for a soft patch and that the bull is alive and well. I beg to differ but instead would rather highlight two important aspects of this market I suspect is dictating price. Shorts are scared and longs are delusional. Bernanke not only taught investors to buy every single dip he even has them convinced the removal of the Bernanke put (i.e. QE) has no downside risk to the market. The move the past two weeks was foreseen by no one and hurt a lot of shorts while making longs feel smart yet again. Even a lot of macro bears were capitulating on the economic data the past two weeks. That is until today.
Guest Post: Boiling Frog Alert: Congress Wants Automatic Wage Deductions To Pay Down The Debt
Folks… you just can’t make this stuff up. On July
6th, just two days ago, at least a dozen busybody Congressmen sponsored
the introduction of HR 2411, the “Reduce America’s Debt Now Act of
2011.” They always come up with fantastic names for these pieces of
legislation… and rest assured, the better/more patriotic the name, the
more ominous the bill. This one follows the pattern. HR 2411 states that
every worker in America should be able to voluntarily have a portion of
his/her wages automatically withheld and sent directly to the Treasury
Department for the purposes of paying down the federal debt. “Every
employer making payment of wages shall deduct and withhold upon such
wages any amounts so elected, and shall pay such amounts over to the
Secretary of the Treasury…” That’s right. Uncle Sam is so broke
that he wants to give all the good little Americans out there the
opportunity to contribute an even greater portion of their paychecks to
finance government largess. Desperate? Hmmm…. Don’t worry, it gets
better.
Guest Post: Deconstructing Algos 3: Quote Stuffing As A Means Of Restoring Arbitrageable Latency; Or Is The CQS TRYING To Crash The Market?
In a recent article Nanex has shown that quote stuffing can slow down the updating of series of stock prices, bids and asks. The article was less clear about why one might do that. There could be arbitraging opportunities. One of the first games these clowns got into was latency arbitrage. HFTer offers a number of shares for sale at one price, and at the first sign of interest, pulls all of the offers and resubmits them at a higher price. The latency comes into play because as another player send his orders in to fill HFTer, and these orders all find their ways to the market via differing routes, each of which has a different latency (lag time)--so instead of all arriving at once, they arrive singly, giving HFTer time to pull the rest of his bids....Saturating the quotes on individual lines will change the time lags (latency factor) during the intervals the quotes are generated. For Thor to work properly, it has to estimate by observation the precise lag between sending an order and having it arrive on each market. Randomly changing the lags for the different lines would confound RBC's (and others) attempts at ensuring all its orders arrive on all markets at the same time. And curiously all of this comes just days after the CQS decided to increase the cross-system capacity for quote stuffing in the market from 750,000 quotes per second to 1 million.... Almost as if someone is urgently trying to recreate the market instability that sent the Dow plunging by 1,000 points in seconds.
Guest Post: Comparing The 2007 Topping Pattern To Now
Remember one simple truth, 91.8% of ES Futures daily volume is attributed to day traders and computer algorithms. And since not one single person within that group uses macro data for their intraday trades then it is safe to say the market in the short term has little to do with pricing in macro economic data. Remember how the SPX peaked two months before the great recession actually began. That is not forward looking. Market participants are already analyzing today's afternoon rally as a sign that this market is resilient, that the economy is still headed for a soft patch and that the bull is alive and well. I beg to differ but instead would rather highlight two important aspects of this market I suspect is dictating price. Shorts are scared and longs are delusional. Bernanke not only taught investors to buy every single dip he even has them convinced the removal of the Bernanke put (i.e. QE) has no downside risk to the market. The move the past two weeks was foreseen by no one and hurt a lot of shorts while making longs feel smart yet again. Even a lot of macro bears were capitulating on the economic data the past two weeks. That is until today.
Leo Kolivakis
07/09/2011 - 07:36
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
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