The Goldman Sachs Stock Exchange?

[johnny531]

Zero Hedge points out that, for the month of April, Goldman Sachs accounted for over 50% of NYSE member principal transactions. If I'm reading this right, they accounted for about 25% of all shares traded this last week.

I'm thinking that, with their direct line to the treasury, this rally will only crash when they let it.

http://zerohedge.blogspot.com/2009/0...ctions_23.html

[Supercilious]

Re: The Goldman Sachs Stock Exchange?

Yup the stock market is a Goldman fleecing operation. Their own trading desk is 5x the volume of their clients....:eek:

Losing money through your stock market investment is equivalent these days with a tax on stupidity ... because one has to be stupid to invest in the Goldman market.

[loweyecue]

Re: The Goldman Sachs Stock Exchange?

Can't beat 'em, so might as well join 'em. Time for nice long position on GS.

[pescamaaan]

Re: The Goldman Sachs Stock Exchange?

Yup the stock market is a Goldman fleecing operation. Their own trading desk is 5x the volume of their clients....:eek:

i think it's important to understand exactly what principal flow is...

i believe it's made up of two components:

a) Goldman's prop desk trading for the firm
b) Goldman's clients giving them a basket to trade at prenegotiated prices. a client in this scenario does not want to take on the risk of trading the basket and therefore would 'sell' the basket to goldman, and then goldman has that basket on it's books to trade for whatever profit it can generate.

b) effectively turns into a, but the source of the trading is client driven, not necessarily it's prop desk entering orders.

does anyone else understand this breakdown a bit better than can shed more light?

in the end, the large volumes by goldman means either your premise is right and that goldman is the market, OR goldman is receiving a lot of flow from clients that want to hand off the trading risk to GS.

[Supercilious]

Re: The Goldman Sachs Stock Exchange?

in the end, the large volumes by goldman means either your premise is right and that goldman is the market, OR goldman is receiving a lot of flow from clients that want to hand off the trading risk to GS.

Correct. Basically it means either goldman is the market or only goldman's clients are left in the market when everybody else is gone ...

In either case goldman steers the market by using their own money or their client's money ... so back to the square one....;)

[pescamaaan]

Re: The Goldman Sachs Stock Exchange?

Correct. Basically it means either goldman is the market or only goldman's clients are left in the market when everybody else is gone ...

In either case goldman steers the market by using their own money or their client's money ... so back to the square one....;)

to some extent....but it's also important to acknowledge that NYSE is only 30% of the market these days. 70% is done in alternative places (nasdaq, bats, dark pools etc..) who knows what the total flow actually looks like...

[Supercilious]

Re: The Goldman Sachs Stock Exchange?

to some extent....but it's also important to acknowledge that NYSE is only 30% of the market these days. 70% is done in alternative places (nasdaq, bats, dark pools etc..) who knows what the total flow actually looks like...

Correct. And the big problem is that all the restricted OTC trading such as the darkpool, cross platform conduits etc are nothing else than the creation of a large synthetic market which is only hedged in the public regulated market. And this screws the market for everybody for the profit of the "market makers".

Stock market were created not as a source of profit for speculators, but as a source of low cost capital financing for companies. Clasical speculators had a positive effect for providing market liquidity and price discovery/arbitrage.

That was once. Now markets have been hijacked by a select groups of financial muggers who act as a parasite. They have to extract their profits by screwing the investors. This increases the cost of financing for companies that are not just parasitic leeches but make real things, contributing to the real economy.

Here is a good example of shody journalism:
http://www.telegraph.co.uk/finance/f...recession.html

As unemployment sweeps Japan in the worst economic crisis since the Second World War, as many as one in three yakuza gang bosses in certain regions has been sacked from the world of organised crime.
More than 82,000 organised crime members are currently believed to be operating relatively openly across the country, according to National Police Agency figures, nurturing close ties to political groups and keeping street crime low.
[...]
While yakuza were traditionally associated with gambling, prostitution and loan-sharking, in recent years they have increasingly moved into the more lucrative world of corporate finance.
Having switched to cybercrime, deposit fraud and money laundering, with profits invested in stocks and real estate, yakuza have become as vulnerable as legal employees as the recession sweeps the nation, according to experts.


Jake Adelstein, a former crime reporter and yakuza expert, said: "People think of the yakuza as wielding swords and having tattoos and missing fingers, What you should be thinking of the modern-day yakuza is Goldman Sachs with guns.

I think this is completely unfair, biased and insulting. Yakuza has never held a government hostage forcing the all people of a country to pay the racket tax.