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Last updateThu, 02 Jul 2015 8am

LOS ANGELES Thursday, July 2nd 2015 4:08

 IT'S ABOUT R.E.S.P.E.C.T.

Using The N-Word

Clinton Galloway
WHO WE ARE-Somehow it has become acceptable to use racial slurs as long as they are directed at yourself. The fact is they are rarely directed at you but to someone else. The most glaring example of this is the use of the N-word. I need say no more because we all understand what the N-word is. The extensive use of the word in modern hip-hop and…

‘LA Is Not Designed To Work’

Jack Humphreville
LA WATCHDOG-The City of Los Angeles is a sprawling enterprise with 32,000 employees and an annual budget of $8.6 billion. But according to Rick Cole, the City’s former Deputy Mayor for Budget and Innovation, “LA is not designed to work." Our City’s operations are relatively simple compared to Los Angeles County and other large cities such as New…

SCOTUS Supports the People, Okays California’s Citizen-Driven Redistricting Commission

Deirdre Fulton
NO MORE SECRET BACKROOMS RUN BY POLITICIANS-In a decision hailed as a "major victory for voters," the U.S. Supreme Court on Monday upheld an Arizona ballot initiative, adopted by voters in 2000, which took redistricting power away from elected politicians and gave it to a nonpartisan commission. The 5-4 decision (pdf), which saw Justice Anthony…

To Latinos Trump Is Bad News

Fred Mariscal
LATINO PERSPECTIVE-This past week businessman Donald Trump announced that he will seek the 2016 Republican nomination for President. We all paid attention to his speech, not for great policy ideas but because he said that “When Mexico sends its people, they're not sending the best. They're not sending you, they're sending people that have lots of…

Supreme Court Aftermath: Meet the New Haters, As Repugnant as the Old Haters

Ken Alpern
HATE POLITICS-The Supreme Court has spoken...again and again and again. And now we're encountering a group of New Haters, as repugnant as the Old Haters, as we discover who is REALLY on the side of Love, Country and Humanity versus that once-marginalized group of emotionally- and intellectually-stunted individuals who now somehow think they're not…

About Time! Neighborhood Councils, NC Alliances: More Comment Time at City Council

Erik Sanjurjo
GUEST WORDS-On Saturday, Council President Herb Wesson gave the keynote speech before the 100+ Neighborhood Council board members and stakeholders gathered for NC Budget Day in City Hall. He announced that in the next Council term he will be folding in neighborhood council related issues under his Rules & Elections Committee, partly to help…

Councilman Parks Sidewalk Repair Plan: Bypass Union Workers

Sharon McNary
CITY HALL-The city of Los Angeles has fallen so far behind on sidewalk repairs, it took a lawsuit to get officials to guarantee more than a billion dollars for repairs. It could take years before the work reaches residential areas because the city must still come up with a strategy for which sidewalks to fix first. But some neighborhoods are…

I Never Believed This Would Happen In My Lifetime

Andrew Sullivan
GUEST WORDS-As Gandhi never quite said … First they ignore you. Then they laugh at you. Then they attack you. Then you win. I remember one of the first TV debates I had on the then-strange question of civil marriage for gay couples. It was Crossfire, as I recall, and Gary Bauer’s response to my rather earnest argument after my TNR cover-story on…

Changing the Way We See Ourselves: Every American Should Adopt a Second Country

Andrés Martinez
TRADE WINDS-About 10 minutes into the soccer game, Sebastian’s cries of “here,” “behind you,” and “cross it” became cries of “aquí,” “atrás,” and “al centro.” I’d never heard so much Spanish voluntarily pour out of my ten-year-old. There is nothing like a hunger for the ball. And nothing like full immersion in a foreign language. I brought…

 

  • Costco: Free Range Liars!

    Christian Cristiano
    WELLNESS POLITICS-Eight years ago grocery retailer Costco (COST) pledged to transition out of using eggs from chickens in small cages to cage free…
  • 10 Things Over-Thinkers Are Tired Of Over-Thinking

    Lindsay Holmes
    WELLNESS-While writing this intro, I deleted the first paragraph approximately six times. My thoughts ranged from "Just get to the point already" to…
  • Can Procrastination Give You a Heart Attack?

    Christian Cristiano
    WELLNESS-A study posted in the journal of behavioral medicine linked procrastination with hypertension and cardiovascular disease. Specifically…



Thu Jul 30, 2015 @ 6:00PM - 08:00PM
A Taste of Chatsworth


Golden Oldie-Johnnie Carson & Betty White-Adam and Eve

Rude. Rude. Rude … orchestra deals with rude cell caller

Whoa! More than 280 million hits. Taylor Swift hit-Bad Blood

 

 

 

 

  

 

 

 

Wall Street's Speed Freaks Could Trigger Another Global Financial Crisis

OTHER WORDS - The power suits making billions off the stock market are always trying to assure us that their trading serves a socially redeeming purpose. They steer money to companies and industries that make our economy more productive, they claim.

In reality, the majority of stock trading today has absolutely nothing to do with helping companies raise capital to innovate and create jobs. Thoughtful investors don't drive today's Wall Street. Computers do.

About 55 percent of all U.S. stock trading last year was performed by computers programmed to make trades at speeds measured in the millionths of seconds. The goal of these "high-frequency traders"? To move faster than the next guy to exploit microscopic differences in stock prices on different exchanges. If you can buy a stock in New York and sell it in London a split second later for a fraction of a penny more, and do that millions of times per day, those pennies can add up. One hedge fund alone, Citadel, made $1 billion in profits off such games in 2009.

As such high-volume, high-frequency trades have come to dominate the market, investment in small businesses has declined. For the computers, it's a lot easier to flip stocks all day than to identify promising enterprises and stick with them.

Oh, and sometimes the computers go haywire. Two years ago, high-frequency traders fuelled a dramatic freefall in the stock market. A trillion dollars disappeared in a matter of minutes.

That time the market recovered by the end of the day. But next time we may not get so lucky. Bart Chilton of the Commodity Futures Trading Commission has warned that if the Flash Crash had taken place in the morning instead of the afternoon, it could have spread like wildfire to global markets.

The high-frequency traders claim they do serve a social good by providing the liquidity that oils the whole financial machine. But as Elara Capital Chairman Avinash Persaud and others have pointed out, during times of crisis, the speed freaks try to "run ahead of the trend, draining liquidity just when it is needed the most."

So what's the government doing to prevent these speed demons from driving us all into another global financial crisis? Not very much. Securities and Exchange Commission chief Mary Schapiro admits that she's worried and is exploring various ways to address the problem.

But so far the agency's main action has been to introduce circuit breakers to stop the trading of a particular stock if the price rises or falls drastically in a short time. These are merely Band-Aids that fail to address the root cause of the problem.

There are still no limits on the number of orders firms can make or cancel each second. The government doesn't even have the ability to monitor such trading as it's happening. It took regulators nearly five months to piece together what happened during the Flash Crash of May 2010.

The Obama administration has also opposed proposals for a small tax (less than 0.5 percent) on each trade of stock. Such taxes would make high-frequency trading less profitable while encouraging longer-term productive investment.

So buckle up. The speed freaks are driving our financial system.

(Sarah Anderson directs the Global Economy Project at the Institute for Policy Studies in Washington, DC. This column was provided CityWatch by OtherWords)
–cw

Tags: Wall Street, Sarah Anderson, OtherWords, economy, business, stock market, financial crisis






CityWatch
Vol 10 Issue 37
Pub: May 8, 2012

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