Guest post by Peter Tchir.
Go Ahead, Make My Day
Greece has negotiated like the Clint Eastwood that spoke to an empty chair for 10 minutes. It is time to bring out the Dirty Harry. Point a magnum at the Troika and tell the “go ahead, make my day’!
Greece has been asking for money in some form or another for almost 3 years now. It begs and pleads. It is forced to do things to its people. Then it is back to begging and pleading. It is time to stop. The negotiations have been stupid. Not once has Greece come up with a credible alternative to more Troika money.
The Troika actually benefits as much, or more from supporting Greece and everyone would be better off if Greece was given real breathing room for a change. Since the Troika either doesn’t see it, or refuses to believe it, it is time to make the Troika see the error of the ways.
Defaulting Takes Planning
Defaulting, properly, is as much a process as anything else. You need to plan. You need to line up post default financing. You need a credible story of why investors should come to you post default. Sovereign defaults are particularly tricky since there are few rules to begin with, and enforcing those rules is tricky.
Our readers know that we have been writing extensively on the HFT theme. Regulators are slowly waking up. Over the weekend, Nanex presented their conclusions on HFT at 10 Downing Street.
France is talking about imposing a tax on all canceled orders. The HFT bashing has reached pathetic levels. Algorithmic trading is good, but must be regulated, so we don’t end up with a market where liquidity dries up, as investors simply can’t hedge their positions accordingly, while the HFT predatory strategies create a “vacuum”. Financial News reports;
The French Senate will vote this week on a draft proposal designed to curb automated trading in what marks the strongest and most direct attack yet on the high frequency trading phenomenon.
The French Senate’s finance committee last week adopted a proposal to impose a 0.1% tax on “automated orders” executed in France in a move designed to directly target the controversial trading practice. The tax would be levied on firms that cancel more than 50% of their orders per day with the 0.1% rate applied to the automated orders sent to the exchange.