“Toxic Order Flows”

Predicting The Risk Flow (Defeating the Weak Force with Relative Strength)

Big banks operate in forex markets with electronic-automated-flow (EAF) trading, affecting fixed-income prices, currencies, and commodities. Much of the activity is aimed at affecting spot prices, which is a wholesale market. This creates a spread between wholesale and retail prices.

With EAF trading the spread can be created for just a millisecond to “make” a profit by the so-called “market makers” who now work with a “modernized” mode of operation cultivated by the GLBA and the CFTMA. These modes (models) of operation are part and parcel of a measurable effect described by Sanders, for example, as “most new income going to the top 1%.”

According to the New York Department of Financial Services, the effect is not exactly legal because it poses a public menace, which demands regulation big bankers say is a moral hazard, interfering with the free-market economic model.

The free-market model is all about risk flow. It is supposed to flow from the bottom up so that, like Sanders says, people not only have the income needed to demand the supply and resist deflation without government intervention, but anonymously determine who wins and loses (exercising real, immediate power). The People can actually determine who survives the marketplace, empirically measured with market share (with the risk flowing–convecting–from the bottom to the top) ON DEMAND!

Since the free-market, demand model (from the bottom up, like Bernie Sanders says we should have) does not fit the attributes of the elite model from the top down, capitalists have to make it so the free-market appears to have a toxic affect.

Financial regulators, like NYC’s FSA, identify what banks call “toxic order flows.” When prices move against big banks, they use EAF trading platforms to create a spread that “allows” them to win more than half the time, if not all the time. Remember, now, the GLBA and the CFTMA allow for these “market innovations” that cause profits to be “made” in zero-sum–i.e., at the expense of retail buyers and sellers (that would be you!) on demand.

Happening within milliseconds, the zero-sum accumulation has the appearance of a god-like, invisible-hand transaction, having the interpretation of an accidental, or emergent property, that is an attribute of “objective reality.” What’s really going on here, however (like Senators Warren and Sanders keep saying), “The free market is being rigged!” This means it is not really a free market because capitalists consider the results (full and immediate accountability without government intervention) to be a “toxic risk flow” that legitimately occurs on demand, having reliable results most if not all of the time.

The results of free-market economics can’t really be legitimate because power naturally flows from the top down, doesn’t it?


About griffithlighton

musician-composer, artist, writer, philosopher and political economist (M.A.)
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s