Latest post of the previous page:Got an "r" missing from, Missier, Alan.
Don't not make no difference to the link though
Oops! Now fixed.Dave B wrote:Got an "r" missing from, Missier, Alan.
Don't not make no difference to the link though
A far-reaching new study suggests a staggering $21tn in assets has been lost to global tax havens. If taxed, that could have been enough to put parts of Africa back on its feet – and even solve the euro crisis
I agree completely, greed is at the top of my hate list.Dave.
A bank account full of cash is a sterile thing, has not real value except to a diseased mind with a hoarding obsession.
I think that's a different kind of disease to hoarding money, lots of folk keep all kinds of stuff that they don't really need, I do myself, but every now and then I have a clear out and put bags of stuff to the charity shop.No different, essentially, from the bloke who tried to take (on his bike) every book we dumped from the Oxfam shop, to the point that he filled his house, except for the entrance hall, and rented garages to store even more.
And this one that was linked to in the above article:Robot trading loses firm $440 million in 45 minutes
12:07 3 August 2012
Paul Marks, chief technology correspondent
The dangers of high-speed, computerised stock trading - which have in the past caused inexplicable "flash crashes" in the markets - have now been visited big-time upon one of the companies in the vanguard of wielding the technology.
Trading software at Knight Capital Group of New Jersey this week began automatically buying shares in a vast array of companies - like RadioShack, Ford Motor Company and American Airlines - in a 45-minute foray of unauthorised trading. When the company then quickly resold its newly acquired, unwanted stock (its massive stock buys had moved the markets) it found it had lost $440 million - four times the profit it made in 2011.
The loss has seriously hit the company's ability to conduct business, says The New York Times. The newspaper says Knight Capital has been a hyper-enthusiastic user of automated trading - indeed, it calls Knight Capital an "unapologetic advocate" of it - and says the firm has striven to outperform its competitors by using such systems to their fullest extent.
The news won't surprise observers who understand the technical limitations of trading with fallible computer systems at speeds humans cannot fathom. The Bank of England warned last summer that high-frequency computerised trading systems that buy and sell shares in fractions of seconds risk destabilising stock markets, with the bank's executive director for financial stability describing the use of such algorithms as "a race to zero".
The US Securities and Exchange Commission is investigating just what happened at Knight Capital - and calls for tighter regulation of computerised trading have already begun.
High-speed trading algorithms place markets at risk
15:39 8 July 2011
Jacob Aron, technology reporter
Computers that buy and sell shares in a fraction of a second are in danger of destabilising stock markets around the world says Andrew Haldane, executive director for financial stability at the Bank of England. Speaking last night at the International Economic Association in Beijing, China, Haldane said that High Frequency Trading (HFT) firms were in a "race to zero" that could increase market volatility.
HFT algorithms can execute an order in just a few hundred microseconds, rapidly trading shares back and forth in order to quickly eke out profits from minor differences on the various exchanges. These trades are so fast that the physical location of the computers executing them becomes vital - even being a few hundred kilometres away from the exchange could mean missing out. It's commerce far removed from any ordinary experience, as Haldane illustrated with an every day example: "If supermarkets ran HFT programmes, the average household could complete its shopping for a lifetime in under a second."
Now it seems this lightning-fast trading could come at a cost. Haldane blamed HFT for causing the "Flash Crash" which occurred on US markets last year, with the Dow Jones losing $1 trillion in just half an hour. The event was marked by trading oddities such as management consulting firm Accenture shares falling from $40 to $0.01, while auction house Sotheby's rose from $34 to $99,999.99 - the lowest and highest values permitted by HFT algorithms.
Haldane said that the latest research shows that while HFT increases liquidity when markets are functioning normally, it has the opposite effect during more troubled times. He also built on work by Benoit Mandelbrot, the mathematician famous for inventing the word "fractal" for patterns with self-similarity. Mandelbrot showed that stock trading can also display fractal behaviour, and Haldane last night said that HFT algorithms cramming more and more trades into this fractal structure could lead to the kind of pricing abnormalities seen during the Flash Crash.
The solution? Introduce new rules to limit the speed of HFT. "Flash Crashes, like car crashes, may be more severe the greater the velocity," said Haldane. "Grit in the wheels, like grit on the roads, could help forestall the next crash."
Not misuse, Dave; the trades were unauthorised. It's a technical problem as much as an ethical or market problem.Dave B wrote:Yeah, I heard this earlier and shuddered. I love technology but this is a case of dangerous misuse. But I will not hold my breath waiting for the plutocrats to get sensible when there's another percentage to be won by getting your bid in 1 microsecond before that of another, regardless of the potential risks.
Yup. Agreed. We can thank Thatcher for that initial stupidity, and now the doom and gloom mongers who say the UK economy will fall apart of we don't take their miserable tainted tax poundsDave B wrote:but I still say that regulation is the only way to cure the problems in the whole of the financial industry.
In China, the rich and powerful can hire body doubles to do their prison time for them.
The ability to hire so-called substitute criminals is just one way in which China’s extreme upper crust are able to live by their own set of rules. While Occupy Wall Street grabbed attention for its attacks on the “1 percent,” in China, a much smaller fraction of the country controls an even greater amount of wealth. The top one-tenth of 1 percent in China controls close to half of the country’s riches. The children and relatives of China’s rulers, many of whom grew up together, form a thicket of mutually beneficial relationships, with many able to enrich themselves financially and, if necessary, gain protection from criminal allegations.