OK. So it’s been pretty well established that Goldman Sachs can generally do whatever the hell it wants. Seeding the upper echelons of government and financial market regulators with former employees raised with cult-like loyalty and mushing enough business models together to create a massive, largely unfuckwithable, finance hydra generally adds up to a blank check underwritten by reality as we know it. Smarter men than I will tell you all about it.
H+ goes the next step and suggests that deep inside Goldmans belly (or would that be in its Sachs?) rumbles a secret prototype for the machine intelligence that will one day muscle all us puny humans into the sewage drain of history.
Y’know, the one that runs along the road of competition. As we ride our ponies of ignorance. Wearing trucker hats of inauspiciousness.
I love metaphors.
Anyway, the gist is that the pattern of just-in-time trades from the likes of Goldman Sachs indicates that they’ve married the sweetheart deals that big-time insider status gets you with the computing/modeling horsepower that supercomputers can throw out. Result? The ability to profit from market trends before they happen, basically snatching the cash from the hand of the guy who first reached out for it by a matter of 30 miliseconds.
Seriously, go read it. Oh and put an ‘allegedly’ in front of everything I just said there.
The whole thing reminds me of a scenario where instead of banning steroids, the Major League was considering banning warp drive. Of course with the regulators of Wall Street springing from the same places as the guys they’re regulating (and sometimes directly paid by the same), its as if the MLB drug detection program was being run by Barry Bonds, Sammy Sosa and whoever Jose Canseco’s dealer was all those years.