Fugitive Caught

Fugitive Caught

Weather Alert

Winter-Like Conditions Expected this Weekend

Winter-like conditions will be possible for middle Tennessee this weekend.  A freeze warning is in effect for Friday and Saturday night.  Temperatures will drop to around the freezing mark in Nashville and upper 20s outside the metro area.  Saturday night will be even colder with temperatures dropping as low as the mid-20s outside the metro.  Breezy NW winds will add to the chill.  Bring plants and pets indoors for the weekend and make sure outdoor vegetation is protected as well.In addition to the cold, rain showers along the Cumberland Plateau will change over to light snow overnight. 

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High Frequency Trading solution - 04/07/14

  I talked about HighFrequency Trading today on the air. Critics describe it as legal frontrunning. It would be illegal if it were done by humans. The fear is that if itgets out of hand, it could crash the stock market and put us back into arecession (at least).

  The way to fix it isfairly simple: make it too expensive to do it. But thats controversial becauseif the costs for conducting transactions were made more expensive for highfrequency traders, it would go up for the rest of us too.

  Heres the way highfrequency trading works. You put in an order with a financial advisor or with anonline broker to buy a stock, and the electronic signal goes from Wall Streetto the various exchanges where the transaction occurs, usually across the HudsonRiver into New Jersey. But before it gets to the exchanges, high frequencytraders put computers with fiber optic cables right in the path of thosesignals " and front run your trade.

  Following complexalgorithms that happen in fractions of a second, the computers will buy thestock you want and sell it to you at a slightly higher price than they boughtit so they make a very small profit. But they conduct these transactionsbillions of times a year, so the profits are enormous " and the increased costis picked up by you and me and anybody else who inadvertently trades with them.

  The reason its costeffective is because stocks trade by pennies now. That means the spread, thedifference between buying and selling a stock, can be so small that its measuredin pennies.  You might be able to sellyour stock for $49.97 and buy it for $50.00. That means theres only adifference " a spread " of 3 cents. Like the old joke " how do you make moneyon that? Volume.

  If you were to goback to forcing a spread of at least a nickel for each trade, the potential profitin each trade would practically go away. The stock market traded for years infractions: sixteenths, eighths, quarters, etc. A sixteenth of a point doesntsound like much, but its more than 6 cents. When the stock market startedpricing in pennies, that spread fell to one cent. (That doesnt mean that astock you buy or sell will have that small a spread, but in highly tradedstocks, it could.)

  Critics of thatsolution say the costs would go up for everybody, and that would be inherentlyunfair to all of us, whether individuals or institutional customers likepension funds investing for retirement.

  The JusticeDepartment, the FBI, Congress and the SEC are all investigating high frequencytrading now. There will be many solutions proposed, but taking away the profitmotive for high frequency traders will certainly be one of them.

 

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Last Update on October 31, 2014 11:27 GMT

JETS-REX-BUMGARNER

FLORHAM PARK, N.J. (AP) -- Michael Vick? Geno Smith? New York Jets coach Rex Ryan knows who he wants as quarterback for his limping team. Ryan jokes they're "gonna go with that Bumgarner guy." Madison Bumgarner is the San Francisco Giants ace and World Series MVP. Bumgarner secured the Giants a Game 7 series victory with a five-inning save. He had two series wins as a starter, too. The Jets are 1-and-7 this season, including seven straight losses. Bumgarner likely won't be available for the Jets on Sunday, so Ryan says he's going with his own lefty, Vick.

WHISKEY WAR

NASHVILLE, Tenn. (AP) -- It's Jack versus George in Tennessee -- in a battle over the legal definition of Tennessee whiskey. The parent company of Jack Daniels supports the law that includes requiring Tennessee whiskey to be made from 51 percent corn, aged in new charred oak barrels and a minimum of 80 proof. The British corporate parent of George Dickel contends those regs are too restrictive. A state subcommittee heard testimony on the issue yesterday. Lawmakers are expected to consider changes to the Tennessee whiskey law in January.

DALLAS ZOO-GIRAFFE

DALLAS (AP) -- He's an awfully big newborn -- six feet tall and about 120 pounds. But this big, little guy has an even taller mom. The Dallas Zoo has a new giraffe. The healthy male calf was born Sunday and the birth was announced Wednesday. The calf doesn't have a name yet. The Dallas Zoo's giraffe herd has now grown to a dozen.

COYOTES-QUEENS ZOO

NEW YORK (AP) -- New York City has five new residents. They're orphaned coyote pups who have a new home at the Queens Zoo. The animals were rescued in Massachusetts, where they were taken to a wildlife rehabilitator. Now, the coyotes have their own exhibit in Queens. The Wildlife Conservation Society's Queens Zoo specializes in animals from the Americas. The pups are the only coyotes on exhibit there.

 
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