San Diego unions push transaction tax

But Don, while manufacturing has declined from 20-10%, we're still producing more and more. The manufacturing output in the US has doubled since 1975, while the population hasn't. It's just that other segments of the economy are growing faster.
— September 27, 2011 6:02 a.m.

San Diego unions push transaction tax

Don, there's guys on the floor of the CBOT, CME, MGEX, KCBOT that have made money every week since the early 60's. Trouble is that you, like most reporters, do much of your research by reading what other reporters say and don't go looking for yourself. Frankly, I don't care if you believe me or not and refuse to defend my record anymore because since I don't manage money my record is not in the public anyways.
— September 27, 2011 5:55 a.m.

San Diego unions push transaction tax

And Don, I guess the points I make, the scholarly papers and articles I cite, are just chopped liver:)
— September 27, 2011 5:19 a.m.

San Diego unions push transaction tax

SP, the goal of Wall Street is and always has been to make money for the exchange members and market participants. Put away that 8th grade history book and get real.
— September 27, 2011 5:17 a.m.

San Diego unions push transaction tax

Fred, You just don't have a clue. Seriously. And keep saying that I just don't understand the algo. And again, you don't understand HFT and resort to the populist rants. And, I agree with you that it will end in tears....your tears.
— September 27, 2011 5:15 a.m.

San Diego unions push transaction tax

And that's why Chilton is a bureaucrat for the CFTC and doesn't trade his own account.
— September 27, 2011 5:11 a.m.

San Diego unions push transaction tax

I primarily trade the wheat market and the returns don't scare me. The mistress of the market has a way of making me very humble, like when I was in the Mexican Peso fiasco in 1982 where I was caught short 50 contracts of pesos the weekend of the devaluation. Had to endure 11 days of limit down moves, and lost $20K per contract...do the math. Another big hit was during the bubble when AMZN was trading at $250 and had a market cap bigger than GE. I shorted a block at $250.75 and watched it gap up to 300 on Monday's open. I bought that stock back in 5 seconds that morning and got killed. Or when I got the wrong way on the CBOT/MGEX Dec 2007 wheat spread where I lost $2.00 per bushel in 3 days on 3 million bushels. I could go on and on about the carnage the mistress of the markets has wreaked upon me, but those hits are all the cost of doing business. All the big market hits in my life, I still sleep like a baby.
— September 27, 2011 5:09 a.m.

San Diego unions push transaction tax

Don, you should really read your history before you make outlandish claims like that. For a good history lesson, read Henry Clews book here. http://www.archive.org/stream/twentyeightyears00c… This book discusses the 19th century shenanigans like watering stock, issuing fake stock, buying off congress, bull cliques, bear cliques, corners, etc. If you think the rigging is bad, look at Gould's attempt at cornering the gold market in 1869 when they basically kidnapped president Grant while on vacation so he could not order the treasury to sell spot gold. Today's action is nothing like it was way back then. But rigged? sure, but then again the general public has no business even being in the markets at all. It's only their greed that keeps them coming back.
— September 27, 2011 5 a.m.

San Diego unions push transaction tax

Without the legal front running, would it be ethical to screw your customer over by not giving him the best price and ignoring your fiduciary duty?
— September 27, 2011 4:54 a.m.

San Diego unions push transaction tax

If I ever managed money, my returns might raise some eyebrows, but I only managed money for a guy once, and it turned out very badly. In fact, this is my little personal story about being a good Samaritan and how badly it turned out. http://masteroftheuniverse.wordpress.com/2008/07/… Many independent traders on the floor make stratospheric returns. Many floor traders lose money also, but the guys who have been exchange members for 30+ years trading their own accounts are doing something right. To get an idea of what kind of returns are needed, do the math. A floor trader might have 1 million in his account, he might have much more or much less. Simple risk management means that he's not going to have the entire 1 million at risk all the time, but it's better to have some capitalization. The floor trader needs to bring his A game to the table every day, and has to learn to grovel for nickels and dimes because they do add up. The best floor traders usually trade spreads, are never net long or short, because spreading is where the real money with a smaller risk is. A floor trader with a million in his account better make 30%+ a year so he can bring home $200K after taxes. Plus if he leases his seat, he needs to pay that plus exchange dues, commissions, cost of money, slippage, outtrades, etc. It's a tough gig out there but there are a few that quietly go about their business, the rewards not being accolades from business reporters and the media, but the rewards coming from the fact that one can play hardball with the big guys and win. Beating C@rgill at their own game is satisfaction. The public doesn't realize that the market is just one big game.
— September 27, 2011 4:52 a.m.