Another Pump Day

Yet another bailout/”liquidity injection” blah blah blah in Europe, everything’s going to be OK for Greece, so the newsreading robots (yes, they do read the news feed) push markets higher because.. because they’re programmed that way. Of course, exactly none of the structural problems have been, or are likely to be, addressed as this morning’s weak economic data show. Rising jobless claims, minus signs on the NY and Philly Fed surveys and so it goes. If you want a great summary of what is really going on, view this clip of David Rosenberg’s presentation at a conference. You may have to feed it a mailinator address. Short summary – deflation is the intermediate to long term trend, any short term inflation is priced in. Goldman Sachs is warning its clients to expect a huge financial collapse as the ability of banks and governments to “kick the can down the road” comes to an end and harsh reality must be faced.

If you need any more evidence of how broken. and bizarre markets have come, read this piece.

In the high-speed world of automated financial trading, milliseconds matter. So much so, in fact, that a saving of just six milliseconds in transmission time is all that is required to justify the laying of the first transatlantic communications cable for 10 years at a cost of more than $300m.

Now if they could speed up light, that really would be worth $300M. But 6ms.? Is that insane or what?

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