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.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.
Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.
Shah is a frequent guest on CNBC, Forbes, and Marketwatch, and you can catch him every week on Fox Business's "Varney & Co."
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.