The "Halting" Truth of a Frozen Nasdaq

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From the Editor: Losing access to your money is frightening, no matter how long the powerless state lasts. But when investors in more than 3,200 public companies lost contact with their Nasdaq-listed shares Thursday, we caught a glimpse of something far more troubling. So here's Shah with what this all means for "our once shining city on the hill."

If Goldman Sachs can lose $100 million in a matter of minutes on account of its computers misfiring, is that a sign of things to come? Or is it proof we're already there?

You heard about last week's shutdown, but do you know what it means?

On Tuesday morning, Goldman Sachs let its computers run; too bad for Goldman they got out of the corral and ran wild.

Within 17 minutes after the markets opened, the damage was done. By some estimates, Goldman could lose up to $100 million.

The final body count – in terms of whether it will affect one or five employees' year-end bonuses at the trading behemoth – depends on whether Goldman will be held responsible for its errant trades, or how many of them will be canceled, or whether they might have to make other traders whole for the black hole they dug for them.

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About the Author

Shah Gilani is the Event Trading Specialist for Money Map Press. He provides specific trading recommendations in Capital Wave Forecast, where he predicts gigantic "waves" of money forming and shows you how to play them for the biggest gains. In Short-Side Fortunes, Shah shows the "little guy" how to make massive size gains – sometimes in a single day – by flipping large asset classes like stocks, bonds, commodities, ETFs and more. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.

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  1. SL | August 26, 2013

    Absolutely fascinating…of course the regulators know nothing of it,right?

  2. Peter King | August 26, 2013

    I simply can't wait for the crooks at JPMorgan to have an 'expression of interest' misfire in their Gold and Silver corners. May the precious metals fire back and burn JPM in a market firestorm inferno. Those crooked bastards will get caught and wiped out sooner or later. I can't wait!

    • DD | August 26, 2013

      Imho – It will never happen!!
      I have heard that if everyone bought just “one ounce” of silver, this would wipe JPM out or at least seriously damage them.

      Until the people demand accountability and have these people thrown out onto skid row with only the clothes on their backs things will continue on as normal. Jail is a no go for these crooks because I am against our tax money paying for their 3 sq’s a day and hot showers etc.

  3. Werner | August 26, 2013

    Things are getting hairy, today Eurex broke down for some problem. Are those operators just out to steal our money? The more I think of it, the more I start hesitating to put my money into those markets. Thank's to Shah we are warned of the upcoming dangers. I fully agree with Peter, those metal market manipulators should get squeezed out of the market too. Things look like being on their way. But I am still afraid they might get some help from the Fed(s) in their nuisance.

  4. Lhaisa | August 26, 2013

    If you type "The Work Involved in Changing a Global Economy" in a search engine, you'll find this article posted somewhere. Evidently they pushed the reset button the other day for all the global economies, using the Nasdaq and it is what caused the shutdown. Very interesting news, involving getting the Dinar of Iraq on-line now as well. Always enjoy your insights. Thank You. Lhaisa

  5. Jeff Pluim | August 26, 2013

    The answer to all of this is simple. No one should be allowed to put in "expressions of interest". They should have to actually make the trade. And then, everyone should have to pay a trade fee of one tenth of a cent for each share purchased or sold. That would definitely keep the Fast Traders from manipulating the market and in fact just plain stealing money from average retail traders.

  6. Scott | September 9, 2013

    The dates on those articles Shah wrote are all 2012. How impressed are we supposed to be that he has been warning us about the dangers of high-frequency trading since 2012? Over the last 15 years, dozens of bestselling books have warned about the risks of high-frequency, computer-driven trading: When Genius Fails, The Big Short, The Quants. Read up on LCTM. If you are impressed by Shah's "inside" knowledge you just haven't been paying attention.

  7. Brad M | September 13, 2013

    HFT is a fact of stock trading now, and the computers and algorithms financial giants use to execute the trades will only get faster and more complex. No wonder the slower, outdated sofware and setup used by some of the exchanges just cannot keep up the pace.. and thus freeze. I wonder if this could ever be done intentionally for a specific purpose? They wouldn't, would they !? When the extremely wealthy brag about owning a stock for a third of a second, the rest of us must realize, when we trade, that there are entities out there who do not trade the same way, with the same info, for the same reasoning, or at the same speed we do. And they can definitely push a stock one way or another quickly.

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