Monday, April 25, 2011

The Black Box

Everyone has one.  What, you don't?  You don't have a Black Box?  You don't have a machine run by algorithms to pull naked sell bids to hit the price you want?  You don't have the ability to manipulate the buy side with ghost orders to create demand?  How do you trade then?  You must have some gift, or an inside source.  Think I am joking?  Everyone has a Black Box.  Everyone.

You know Goldman Sachs has one, if not many, and the same goes for all other Major trading firms.  But did you think that the President's Working Group on Financial Markets has one?  Oh, but they must!  How else could they stabilize the markets?  To stabolize, or rather, run the markets, they have to have the finest!  And if the US PWG (President's Working Group) has one, then surely the Japanese PWG has one.  And if Japan does, then China does.  And if China does, Russia does.  And if Russia does, Europe must!  And if they all have them, then the House of Saud has to, too.  You still do not have one?  Too bad for you!

Africa probably has one made in the 90's they bought on the black market; come to think of it, that is probably reason number three for the escalating war with Libya (behind  1. oil and  2. gold reserves).  Brasil probably bought their's used from Russia a decade ago, so everyone has one.

Seven tenths of all trading is done with Algorithmic Black Boxes.  The Black Box uses Algorithms programed by the smartest Neo Keynesian bachelor of science math majors alive to drive prices through tops and bottoms as to buy low and sell high.  These machines, the Black Boxes, use these programs to  manipulate supply and demand.  They are the essence of market manipulation, and since manipulation is in vogue, everyone does it.

The PWG runs, or rather stabilizes the markets, and where they leave off, GS, JPM, Japan, Europe, and China take over.  So if they are going to trial the PWG's moves, how else could they trade?  Everyone has a Black Box.  Everyone.

2 comments:

  1. LH -

    It is hard to put into words how inspiring/enlightening you are. Put up a donation button, please.

    http://www.youtube.com/watch?v=_l09H-3zzgA

    ReplyDelete
  2. Your compliment is the donation. Thank you.

    ReplyDelete