I want to point out two articles today from the Marten’s. You should read them both. The first the Marten’s take excerpts from Wall Street Watchdogs and their comments on the current state of your financial system… corrupt & more corrupt.

The first article is How Corrupt Is Wall Street? Two Watchdogs Weigh In.

The second is about a 2020 and 2021 Killer Shark blowing up the markets with their activities. The article is called, Is Citadel’s Hedge Fund a Harmless $35 Billion Minnow or a $235 Billion Killer Shark?

Not mentioned in this article, Citadel that was so highly leveraged in Treasuries that the inversion in interest rates in 2020 was about to blow their trade up and force them to dump a trillion in Treasuries on the open market if their buddies at the Fed did not pump trillions into the Repo Markets in late 2019. The Fed saved them.

And ask yourself do you believe Citadel is providing free trades for retail traders out of the goodness of their hearts? Citadel handles 40% of the retail trades.

The Marten’s discuss how Wall Street banks are the ones that have lent Citadel billions to go high leverage in the the markets (front running retail trading) to to the tune of turning $35 billion in equity into managing $235 billion in assets (6.7x).

It was Citadel caught up in the Gamestop/Robinhood blow up which seemed to make the stock market go down as Gamestop went up in price. And curiously, as I write, Gamestop is surging again (up 300%) from a couple days ago and the stock market is going down.

Marginal selling and marginal buying drive the market prices. Citadel is a market maker. Former Federal Reserve officials get paid handsomely after retiring as “advisers” to Citadel. Citadel is a criminal organization if you look at their record. The Marten’s did and spell it out for you in Is Citadel’s Hedge Fund a Harmless $35 Billion Minnow or a $235 Billion Killer Shark?

Take a look.

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Categories: Perspectives