Comments on: High Frequency Trading: Wall Street's New Rent-Seeking Trick

By: Could Goldman Sachs Share GM's Fate?

Could Goldman Sachs Share GM's Fate? — Fri, 15 Jan 2010 20:35:45 +0000

[...] is clear: The reduction in U.S. investment banking profitability is likely to be permanent, with various rent-seeking scams blocked. In this post-crisis era, investment pools from China, the Middle East and other parts of [...]

By: nvest80

nvest80 — Sun, 10 Jan 2010 01:21:13 +0000

NO TO TAXATION ON DAYTRADING.

Second, we don’t need more government and regulation. If HFT makes some people money so be it. I’m not a proponent on this but am realistic enough that whatever the solution might be, it will just cost more money to you and me. There’s nothing wrong with daytrading and nothing wrong with shorting. We don’t need more government, regulations, and taxation. What we need is a free market and with that we need to get rid of the Federal Reserve System and introduce sound money. No more of the too big to fail BS. Let companies that do bad business fail – bailing them out has long term negative consequences as people and company know in the future that there is a safety net. Nothing is too big to fail – failure might cause short term pain but with that one can and should learn and those lessons should be used for the better. Failure is not a bad thing, not learning from failure is. I’ve learned from all my trading and investing mistakes and as a result I’m better.

We further should get rid of the President’s Working Group on finance. Look at the IBM chart post-115 gap up…who was behind that manipulation? …Who was behind the manipulation on so many other stocks since July 2009? And often, it’s the ones that are part of major indices that are acting strange right around their “support level” and rally on nothing substantial – with that they bring the others up. Enough of the manipulated BS. The USSA$ will ultimately expose all the BS that took place for so long. Printing printing printing…but what happens when the world no longer accepts the USD as the Reserve Currency?

Interesting times ahead…

By: Open Letter to Timothy Geithner: Is Your Nose Getting Longer?

Open Letter to Timothy Geithner: Is Your Nose Getting Longer? — Tue, 15 Dec 2009 17:56:51 +0000

[...] sound capitalist practices. They instead stem from such contrivances as credit-default swaps and high-speed trading. And those are short-term rent-seeking activities – not long-term wealth-generating [...]

By: Can U.S. Bank Stocks Double Again in 2010?

Can U.S. Bank Stocks Double Again in 2010? — Thu, 10 Dec 2009 22:58:13 +0000

[...] as well as on the trading-oriented investment banks. They would hit especially hard the “fast-trading” business initiatives, in which investment banks profit from their inside knowledge of money [...]

By: RK

RK — Tue, 29 Sep 2009 18:48:27 +0000

I have a better idea. Scale capital gains taxes to the amount of time a security is owned. If you own it a day, you pay a 95% gains rate. Own it ten years, cash out free. Own it millisecond, the tax rate is %125.

By: Jay

Jay — Mon, 17 Aug 2009 11:45:50 +0000

“HFT makes markets more efficient by reducing bid ask spreads.”

Nick, these people are stupid enough to believe that if the current bid/ask is $2.30/$2.32 that Goldman can go out and make an instant profit by buying for $2.30 and selling at $2.32.

If you don’t get the last paragraph try these links…

http://www.investopedia.com/terms/b/bid.asp
http://www.investopedia.com/terms/a/ask.asp

By: Madeline

Madeline — Sun, 16 Aug 2009 18:13:02 +0000

It really is an outrage for Goldman Sachs to take money from hard working Americans. They have already lost billions over the past year and a half. Practices like HFT should definitely be stopped. It has advantages, just like insider information, that the rest of us don’t! This is not how our system is suppose to work. Goldman Sachs should be ashamed of themselves and should answer for what they have done.

By: Carlos Comesana

Carlos Comesana — Sun, 16 Aug 2009 11:56:22 +0000

Don’t understand how is it posible that the controlling agencies didn’t stop timely this illegal inside trading computer transactions !. Get taxable from now on this methodology and with the historical computer records let’s identify the dirty HFT transactions to be fined acorddingly and claw back the rebates!

taign porocedujrew ut this criminal procesdjure this

By: Pete Ewing

Pete Ewing — Sat, 15 Aug 2009 11:29:31 +0000

Don’t even start with the tax per trade at any amount. With this administration the tax will be up to 10 cents a share in no time and $1.00 within 4 years.

By: anonymous

anonymous — Fri, 14 Aug 2009 21:25:48 +0000

Martin has no idea what he’s talking about. Goldman derives less than 1% of its profit from HFT (do your homework!!!!)…it makes FAR more money trading commodities, fixed income etc.
Do your homework!

Second, the barriers to entry into this market are TINY. There are numerous brokerage firms which will let you co-lo for peanuts. The REAL barriers to entry are in other markets (try getting good spreads in corp bonds as an individual investor!!!! Don’t see you bitching about that!) Do your homework!

HFT is ALSO responsible for DRAMATICALLY lowering spreads. Investors have benefited hugely from this. You completely fail to realize that if you tax HFT, spreads will widen accordingly and the average investors will be affected.

The REAL cost to investors isn’t the 1/10 of a penny taken by the HFT guy (in turn for BEARING RISK!!!!), but rather the $10 commission charged by Schwab etc. Think before you write about something you clearly know nothing about.