"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Friday, July 13, 2012

Roger McNamee Thinks NASDAQ Are "Not Good Guys"

Roger McNamee is dead on in his short yet passionate discussion regarding all things HFT and the NASDAQ shameless display of behavior during the Facebook IPO grand theft scheme.  One thing becomes very clear in this video which is that our own behavior has potentially saved us for the foreseeable future.  This complete breakdown of trust in the equity market, which is the easiest and most popular market for Mom and Pop to come to, has passed its break point.  McNamee see's no IPO's for the next 5 months, at least.  And although the Chicago boys of the 70s rode their Efficient Market Hypothesis horseshit all the way to the top, markets are still inefficient and oddly, the HFT have driven out the inefficiencies that make the equity markets so appealing to Mom and Pop.

Lets face it, the common market is not that complex, when compared with CDS and government bond auction markets.  If common folk can't trust the process of the equity market, why should they trust the regulator, the clearing-house, the broker dealer, the order routing system, the exchange, etc, etc, etc.  The trust is vanishing fast, if its not gone already.  These are very sad times for Finance in America and around the globe.

And for those still curious, here is the breakdown on the Facebook IPO:

Nanex Part A
Nanex Part B

Calibrated Confidence's take on the IPO