3 ms·

Given how modern banking works, its probably not only bundled but was chopped into 12 different pieces that was put in 13 different bundles :P

susiecambria 4y ago
And in the business, the pieces are referred to as tranches. For those who need a primer, check out https://www.compareclosing.com/blog/all-about-mortgage-tranches/ https://www.compareclosing.com/blog/all-about-mortgage-tranc...
jimbob45 4y ago
Is there a place for people like me that have lost complete faith in the public markets and banking systems? I've independently come to the conclusion that the NYSE/NSDQ are scams and want to stick with stuff like government bonds. I'm surely not the only one to think this way, right?
- rightbyte 4y ago
  There are alot of scammy stuff going on in public companies but what is the scam on the exchanges themself? I mean surely most companies on the exchange are not scams either?
  - jimbob45 4y ago
    https://www.protocol.com/fintech/payment-for-order-flow-explained https://www.protocol.com/fintech/payment-for-order-flow-expl... https://www.npr.org/2014/04/01/297686724/on-a-rigged-wall-street-milliseconds-make-all-the-difference https://www.npr.org/2014/04/01/297686724/on-a-rigged-wall-st... PFOF and HFT mean that no matter how much you win, the exchanges and HFTs will always win more.
    - richiebful1 4y ago
      Payment for order flow is what underpins commission-free trading. Say what you will, but as a long-term investor, I'm always trying to minimize fees and commissions. It's extremely hard to win as a small-money day trader, so I won't play that game.
    - MrMan 4y ago
      This gives you lower fill prices stop worrying about things extraneous to your investing bracket. You should worry about allocating long term to sensible pieces of the pie chart and minimize churn.
    - quickthrowman 4y ago
      HFT has reduced spreads of some equities to a penny, all market participants benefit from increased liquidity. Also, Citadel is buying retail order flow because they’re reasonably certain they can capture the spread and not get run over by an institutional trader with more information than the market maker. They aren’t frontrunning your 20 share order because you aren’t going to move the market by purchasing 20 shares. Zero commissions and tight bid/ask spreads are better for an individual than no PFOF and $5/trade transaction fees with 25-50 bps bid/ask spreads.
    - positr0n 4y ago
      Both PFOF and HFT are good for the little guy and neutral to negative for the big traders. https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone... https://www.chrisstucchio.com/blog/2012/hft_apology.html https://www.chrisstucchio.com/blog/2012/hft_apology.html
- bdcravens 4y ago
  Just buy everything outright, no financing.
- joebob42 4y ago
  What do you mean "a place"? No one is making you buy nasdaq, just stick with government bonds.
- Ekaros 4y ago
  And what if you don't even trust the government bonds... The debt/gdp ratio doesn't look that good either...

susiecambria 4y ago

And in the business, the pieces are referred to as tranches. For those who need a primer, check out https://www.compareclosing.com/blog/all-about-mortgage-tranches/ https://www.compareclosing.com/blog/all-about-mortgage-tranc...

jimbob45 4y ago

Is there a place for people like me that have lost complete faith in the public markets and banking systems? I've independently come to the conclusion that the NYSE/NSDQ are scams and want to stick with stuff like government bonds. I'm surely not the only one to think this way, right?

rightbyte 4y ago
There are alot of scammy stuff going on in public companies but what is the scam on the exchanges themself? I mean surely most companies on the exchange are not scams either?
- jimbob45 4y ago
  https://www.protocol.com/fintech/payment-for-order-flow-explained https://www.protocol.com/fintech/payment-for-order-flow-expl... https://www.npr.org/2014/04/01/297686724/on-a-rigged-wall-street-milliseconds-make-all-the-difference https://www.npr.org/2014/04/01/297686724/on-a-rigged-wall-st... PFOF and HFT mean that no matter how much you win, the exchanges and HFTs will always win more.
  - richiebful1 4y ago
    Payment for order flow is what underpins commission-free trading. Say what you will, but as a long-term investor, I'm always trying to minimize fees and commissions. It's extremely hard to win as a small-money day trader, so I won't play that game.
  - MrMan 4y ago
    This gives you lower fill prices stop worrying about things extraneous to your investing bracket. You should worry about allocating long term to sensible pieces of the pie chart and minimize churn.
  - quickthrowman 4y ago
    HFT has reduced spreads of some equities to a penny, all market participants benefit from increased liquidity. Also, Citadel is buying retail order flow because they’re reasonably certain they can capture the spread and not get run over by an institutional trader with more information than the market maker. They aren’t frontrunning your 20 share order because you aren’t going to move the market by purchasing 20 shares. Zero commissions and tight bid/ask spreads are better for an individual than no PFOF and $5/trade transaction fees with 25-50 bps bid/ask spreads.
  - positr0n 4y ago
    Both PFOF and HFT are good for the little guy and neutral to negative for the big traders. https://www.kalzumeus.com/2019/6/26/how-brokerages-make-money/ https://www.kalzumeus.com/2019/6/26/how-brokerages-make-mone... https://www.chrisstucchio.com/blog/2012/hft_apology.html https://www.chrisstucchio.com/blog/2012/hft_apology.html
bdcravens 4y ago
Just buy everything outright, no financing.
joebob42 4y ago
What do you mean "a place"? No one is making you buy nasdaq, just stick with government bonds.
Ekaros 4y ago
And what if you don't even trust the government bonds... The debt/gdp ratio doesn't look that good either...