Saturday, July 18, 2009

Hacking Wallstreet

many big investing companies such as Goldman Sachs use computer programs to buy and sell stocks and commodities. These programs agergate data (such as the news) to know when is the best time to buy and sell. This allows them to be a head of the average investor.

Goldman Sachs has the best of these programs and they use it to buy stocks a few milliseconds after news that will make the stock go up hits and sell as soon as their is an up tick in the stock.

it seems that a former employee of Goldman Sachs named Serge Aleynikov (who maybe the same Serge Aleynikov in this linkedin page) stole the code.

well at first Serge Aleynikov says it was an accident and he was only downloading open source information but it seems that he tried to erase his trail by deleting his bach files but he didn't realize Goldman sachs saves that information.

though Serge Aleynikov did send the info he retained German website, owned by a person in London. That plus his Russian background leads some to think that was a plot of international espionage and some fear that people could use this program to manipulate the market (of course I'm not sure why one should feel much safer knowing a company can manipulate the market vs people in a different country)

Serge Aleynikov also has had history of IP violation in the past including a case in 1997
Aleynikov Pacer

after leaving Goldman Sachs Serge Aleynikov went to work for Teza Technologies, LLC, in Chicago. They paid him 3 times what he made at Goldman Sachs. It's easy to wonder if they have any part in this or was Serge Aleynikov just looking for the next company to work for and maybe still sensitive information from.

recently Serge Aleynikov has been released on bond. but I don't think he is no longer dancing (like he was with wife in this video...both enjoy ballroom dancing)

Wednesday, July 15, 2009

Goldman Sachs blowing the bubbles that drive and crash our economy

here is a very interesting article from Rolling Stone magazine about Goldman Sachs that covers the investment's company's long history of driving and creating bubbles in the economy to turn a huge profit.

the article is by Matt Taibbi who's been doing a lot of writing about Goldman Sachs on True/slant

The article paints Goldman Sachs as being the driving force behind the current recession and the 90's internet bubble and shows the next bubble you either want to look out for or try to invest in before it pops.

and speaking about Goldman Sachs you may want to see what investor Mike Morgan has to say about them on his site

Sunday, July 12, 2009

the real reason the economic stimulus package hasn't pulled us out of a recession yet (and when we well likely get out of the recession)

I've notice a lot of talk about the fact that the Economic Stimulus package hasn't worked to get us out of this recession.

Of course politicians that voted against the stimulus are saying they would have done better and there's even talk of a need for a second stimulus plan to be run (oddly enough some of the people saying this disagreed with the ideal of a stimulus in the first place)

These views are over looking something very big, either out impatient (really do people think the economy would turn so extremely that we would go to record job lose to job gains in a few months) or they are using this as a political ploy.

The truth is that out of the nearly $787 billion stimulus under 10% of the funds have been used for anything.


the money is select to be spent in a number of areas. They have a number of project that haven't yet (or just starting to) get of the ground. There is also money for States to spend in certain areas but no states have really done any big project yet because they didn't have enough time, and from what I've seen most things wont be able to get of the ground until 2010 or so.

it takes time to get infrastructure projects off the ground. it takes time for people to go through the education and training that have been set, ect.

Because of this fact I don't think we well get out of the Recession (or the so called real recession which basically means the average Joe and Jane well start doing well economically) in 2010 or 2011.