Stock Market Shenanigans

[SuburbanFarmer]

Ideally, a thread to post your insight into the most manipulated market in history.

Came across this gem today, and I'm struggling to understand the implications of it.
https://riskreversal.com/2017/06/14/vol ... amma-rays/

Basically, the algos and option plays have combined to damp down volatility to bizarre lows. What happens when this pattern breaks? Does it break? How long can this go on? Is this time different?

[Hastur]

You should read up on the Plunge Protection Team.

[brewster]

Wall Street is simply a rigged casino with no security. If a Vegas casino put as little of their cashflow into security as Wall Street does they'd be robbed blind. The SEC should be funded directly as a % of market cashflow.

Having dinner with an old buddy who's a banker and Republican I thought I was tweaking him when I said "hedge funds are just institutionalized insider trading". To my surprise he instantly agreed. So many here want unregulated free markets, but all that means is the white collar criminals will be even more free to do as they like.

[DBTrek]

If free markets breed crime I suppose the only answer is to turn to crime-free communism.

[brewster]

If free markets breed crime I suppose the only answer is to turn to crime-free communism.

Do you also believe that if anarchy on the streets is unacceptable the only alternative is a police state and "show me your papers"? Is there no acceptable level of regulation short of the extreme? The only reason we have market regulations is it became perfectly clear by the end of the 19th century that without them manipulation and fraud was rampant. And it's been a game of cat and mouse ever since, with the added twist the mouse can buy off the cat, or get the cat kicked out of the house.

[kybkh]

The only thing that matters is the faith in the US Govt. As long as we are the most sable nation on the planet we can hit Alt+P all day to "prime the pump".

If somehow the BRICS or the EU appear to be a more stable store of wealth (highly unlikely) then its SHTF time.

The end.

I will add though that the Alt+P function is like the infinite lives Cheat Code on Contra. It leads you to doing all sorts of silly shit that is actually counter-productive to winning the game because it doesn't matter as long as you got infinite lives (money). If something happens and the cheat code quits working and you never actually learned how to beat the game without cheating...you are fucked.

[SuburbanFarmer]

The only thing that matters is the faith in the US Govt. As long as we are the most sable nation on the planet we can hit Alt+P all day to "prime the pump".

If somehow the BRICS or the EU appear to be a more stable store of wealth (highly unlikely) then its SHTF time.

The end.

I will add though that the Alt+P function is like the infinite lives Cheat Code on Contra. It leads you to doing all sorts of silly shit that is actually counter-productive to winning the game because it doesn't matter as long as you got infinite lives (money). If something happens and the cheat code quits working and you never actually learned how to beat the game without cheating...you are fucked.

True fact, and well said.
But how long can this last? I got kids...

I don't recall being asked my opinion on this financial suicide pact.

[DBTrek]

Do you also believe that if anarchy on the streets is unacceptable the only alternative is a police state and "show me your papers"? Is there no acceptable level of regulation short of the extreme? The only reason we have market regulations is it became perfectly clear by the end of the 19th century that without them manipulation and fraud was rampant. And it's been a game of cat and mouse ever since, with the added twist the mouse can buy off the cat, or get the cat kicked out of the house.

We have more regulations, we have less regulations, fraud remains rampant. It's almost as if the regulations we pass aren't intended to prevent fraud, but rather to advantage one group of fraudsters against another. Honest regulation is fine, but what's the point of demanding more and more 'regulation' from a government that is bought off by the very institutions and businesses you're trying to regulate?

Seems kinda stupid.

[SuburbanFarmer]

Do you also believe that if anarchy on the streets is unacceptable the only alternative is a police state and "show me your papers"? Is there no acceptable level of regulation short of the extreme? The only reason we have market regulations is it became perfectly clear by the end of the 19th century that without them manipulation and fraud was rampant. And it's been a game of cat and mouse ever since, with the added twist the mouse can buy off the cat, or get the cat kicked out of the house.

We have more regulations, we have less regulations, fraud remains rampant. It's almost as if the regulations we pass aren't intended to prevent fraud, but rather to advantage one group of fraudsters against another. Honest regulation is fine, but what's the point of demanding more and more 'regulation' from a government that is bought off by the very institutions and businesses you're trying to regulate?

Seems kinda stupid.

So... the solution is to remove all regulation and just accept the corruption?

[Ex-California]

You should read up on the Plunge Protection Team.

I heard about this on Stapleton. Terrifying