A Look Inside The New York Fed's Trading Desk: Then And Now

In late 2010, we wrote: “The World’s Most Important Trading Desk Is Not At Goldman, But Is On The 9th Floor Of 33 Liberty Street” in which we said “even though our good Samaritan friends at One New York Plaza may take offense to this designation, the trading desk that controls the formerly free world is not located anywhere on the premises of Goldman Sachs, but is instead situated on the 9th floor of 33 Liberty Street, also known as the home New York Fed. From a trading desk cluster at this location, 39 year old Brian Sack controls the uber-secretive money flows that determine the daily fate of credit, equity and virtually all other markets, that have now been subsumed by the government’s central planning ambitions and aspirations to determine each and every uptick in the increasingly more irrelevant S&P 500.”

Since then Brian Sack has moved on, replaced by the levitating market wizard, Simon Potter, and his disciple Kevin Henry. However, while we identified long ago the “wealth effect” nerve center of the New Normal, one thing largely unavailable, was pictures of this trading desk with seemingly no sell buttons. Until now: below, courtesy of Wall Street on Parade, we present a modest compilation of not only what the current NY Fed trading desk looks like but also compare it to its predecessor, as it appeared on vintage photos from the 1930s.

Now:

The Trading Desk at the New York Federal Reserve Bank can influence and manipulate our markets. William (Bill) Dudley is Manager, CEO, and continuing member (vice chairman) of FOMC. (Source)

 

 

 

 

 

 

Blake Gwinn, left, and James White in the operations room at the Federal Reserve Bank of New York (source)

 

 

 

 

 

 

 

 

A Trader Monitors Four Computer Screens on the Open Market Trading Desk at the Federal Reserve Bank of New York (source)

 

 

 

 

 

 

 

Is that Kevin in the foreground? Open Market Trading Floor at the Federal Reserve Bank of New York (source)

 

 

 

 

 

 

 

And then:

New York Federal Reserve Bank Trading Floor Before Computer Screens (source)

 

 

 

 

 

Trading Area of New York Fed, Vintage Photo (source)

 

 

 

 

h/t Wall St. On Parade


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/ByMql4zHz-w/story01.htm Tyler Durden

If You’re (Not) Traveling by Air Today, Here’s How to Fix America’s Fugged-Up Air Traffic Control System

 

If you’re traveling
by air today, well, good luck to you. A storm is paralyzing a good
chunk of the Northeast and once airports in Boston, Philly, New
York, and Newark get even a little bit backed up, the ripples fan
out like a cannonball hitting a fat guy in the stomach in
super-slow-mo.

As you’re cooling your jets in airports (which approximate
homeless shelters on the holidays), consider this: It’s not just
weather that screws up air travel so much. The simple fact is that,
as Reason Foundation’s Bob Poole says in the video above, “The air
traffic control system in the United States is technologically
obsolete. This model is basically the same model that we have
used since the beginning of air travel.”

Click above to watch “Your Flight Has Been Delayed…And It’s
Washington’s Fault.” Click here for
downloadable versions and more links and resources.

from Hit & Run http://reason.com/blog/2013/11/27/if-youre-not-traveling-by-air-today-here
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If You're (Not) Traveling by Air Today, Here's How to Fix America's Fugged-Up Air Traffic Control System

 

If you’re traveling
by air today, well, good luck to you. A storm is paralyzing a good
chunk of the Northeast and once airports in Boston, Philly, New
York, and Newark get even a little bit backed up, the ripples fan
out like a cannonball hitting a fat guy in the stomach in
super-slow-mo.

As you’re cooling your jets in airports (which approximate
homeless shelters on the holidays), consider this: It’s not just
weather that screws up air travel so much. The simple fact is that,
as Reason Foundation’s Bob Poole says in the video above, “The air
traffic control system in the United States is technologically
obsolete. This model is basically the same model that we have
used since the beginning of air travel.”

Click above to watch “Your Flight Has Been Delayed…And It’s
Washington’s Fault.” Click here for
downloadable versions and more links and resources.

from Hit & Run http://reason.com/blog/2013/11/27/if-youre-not-traveling-by-air-today-here
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Obama Administration Proposes Rule to Limit Political Activity by Non-Profits, But Will It Affect Pro-Obama Groups?

like debbie did dallas?Criticized by its own Inspector General earlier
this year on the IRS targeting of tea party groups for special
scrutiny, the Treasury Department appears to be doubling down,
proposing a new rule to restrict political speech by non-profits.
The Washington Post
reports

Under the proposed rule, groups such as Crossroads GPS,
co-founded by GOP strategist Karl Rove, and the Democratic-allied
League of Conservation Voters would no longer be able to claim some
of their routine activities as part of their work as “social
welfare” organizations.

Instead, the new Treasury Department regulation would define things
such as distributing voter guides, registering people to vote and
running ads that mention elected officials close to Election Day as
“candidate-related political activities.” The rule would
substantially roll back the level of political activity open to
“social welfare” groups.

Unmentioned by the Washington Post is one of the
biggest 501(c)4s  of them all, Organizing for Action (OFA,
former Obama for America), which still operates the website
barackobama.com and the president’s Twitter feed.  OFA has
been very active since the 2012 election in promoting President
Obama’s and the Democrats’ agenda. See some of their, uh, “social
welfare” work here.
 

Other non-profit groups have gone to bat for Obama’s policies
too, sometimes under the guise of being non-partisan yet
specifically tailored in support of a distinctly political agenda.
Capital City Project
reports
, for example, that Families USA, a “non-partisan”
non-profit focusing on “affordable health care for all Americans”
received a $1 million grant to collect pro-Obamacare stories.
Capital City Project points out those stories then get picked up by
media outlets who source them to an “independent” or non-partisan
group, even though it’s a group whose mission lines up neatly with
the title of the president’s signature legislation. 

It’s a safe bet non-profits that support the agenda of the
ruling party (for now Democrats) won’t be as negatively affected by
the proposed rule and other attempts at government regulation as
non-profits challenging those in power. The IRS’ targeting of Tea
Party and “patriot” groups speaks to that. Money facilitates
speech, and in this country at least, the exercise of speech is
free. The Treasury Department ought to be disengaging from the
practice of regulating what amount to groups exercising free
speech, not proposing new rules to further restrict political
speech it doesn’t favor.

from Hit & Run http://reason.com/blog/2013/11/27/obama-administration-proposes-rule-to-li
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Los Angeles Schools to Try Not Treating Children Like Criminals to See How That Goes

They're not out for the holidays; they all have court hearings.Los Angeles Unified School
District has stumbled upon a revolutionary concept in disciplining
young schoolchildren: Maybe don’t treat them the way the police
department treats parolees? That is to say, LAUSD is pulling back
on responding to common child misbehavior with police citations.
From the
Los Angeles Daily News
:

Starting Dec. 1, elementary and some middle school students in
Los Angeles Unified will no longer receive police citations for
most misbehavior.

According to the new policy, Los Angeles School Police will
refrain from writing criminal citations for infractions such as
fighting and writing on desks, instead turning students to school
officials for campus-based punishment that is more in line with
their age and nature of the violations.

“This is an important step, but it also raises concerns that
there is more to be done,” said Manuel Criollo, director of
organizing for the nonprofit Community Rights Campaign, an L.A.
group that has lobbied for the decriminalization of many
school-based offenses. “Some of this should be common sense, and
the next thing is to expand it in the middle schools. Thirteen- and
14-year-olds should also be covered by this.”

This “new policy” smells remarkably old actually, like how
schools handled discipline when those of us who are adults now
attended school. Officials have finally realized that treating
students like criminals discourages them from doing things like
attending school (important, because that’s how school funding is
determined):

The directive from LAUSD Police Chief Steven Zipperman asks
school-based officers to look at misbehavior of students under the
age of 13 as a teaching opportunity rather than a reason to hand
out citations that could discourage them from attending class
altogether.

If a ticket is issued, officers should have an articulated
reason for doing so, as well as the permission of a supervisor. The
policy does not cover possession of contraband.

The Community Rights Campaign calculated that school police have
handed out more than 4,700 citations to students under the age of
14 for the 2012-13 school year.

from Hit & Run http://reason.com/blog/2013/11/27/los-angeles-schools-to-try-not-treating
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Banning Doorknobs, Frat Parties, and “God Bless America” Signs?! Nanny of the Month (‘13-11)

“Banning Doorknobs, Frat Parties, and ‘God Bless America’
Signs?! Nanny of the Month (‘13-11)” is the latest video from
ReasonTV. Watch above or click on the link below for video, full
text, supporting links, downloadable versions, and more Reason TV
clips.

View this article.

from Hit & Run http://reason.com/blog/2013/11/27/banning-doorknobs-frat-parties-and-god
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Banning Doorknobs, Frat Parties, and "God Bless America" Signs?! Nanny of the Month (‘13-11)

“Banning Doorknobs, Frat Parties, and ‘God Bless America’
Signs?! Nanny of the Month (‘13-11)” is the latest video from
ReasonTV. Watch above or click on the link below for video, full
text, supporting links, downloadable versions, and more Reason TV
clips.

View this article.

from Hit & Run http://reason.com/blog/2013/11/27/banning-doorknobs-frat-parties-and-god
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Season of the Assassins

If you thought all those assassination anniversary
posts
would end after November 22 was over, think again: We’re
just moving on to another assassination. Look what happened 35
years ago today:

Moscone dead, Milk dead, Feinstein in power—a triple tragedy.

On November 27, 1978, the ninth day after Jonestown,
Daniel James White, ex-cop, former paratrooper, and superjock, an
All-American Boy from everybody’s favorite city, strapped on his
police special .38, loaded his pockets with extra hollow-point
bullets that explode upon impact, and went to San Francisco City
Hall to settle some political differences.

That’s from Warren Hinckle’s great piece “Dan White’s San
Francisco,” published in the libertarian magazine Inquiry
in the wake of White’s murder of Mayor George Moscone and City
Supervisor Harvey Milk. The double assassination would be followed
by one of the most infamous psychiatric legal arguments of recent
history — the “Twinkie defense,” in Paul Krassner’s famous phrase
— and then by the White Night riots, when the city’s gay community
reacted to the assassin’s acquittal.

The whole Hinckle article is worth a read.
If you need a soundtrack while you peruse it, here is the Dead
Kennedys’ (*) response to the White verdict:

(* You just can’t escape the JFK references.)

from Hit & Run http://reason.com/blog/2013/11/27/season-of-the-assassins
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A Glimpse Inside The Department Of Labor’s Curious Initial Claims Seasonal Adjustment

Something curious happened earlier today when the DOL revealed its latest initial claims number: while the seasonally adjusted print declined by 10,000 to an expectations beating 316K (a change that identically matched what happened to the Seasonally Adjusted print a year ago), the unadjusted number rose by 37,229 to 363K. That’s ok: after all that’s what “seasonal adjustments” are for – to take a volatile number which historically posts an abnormal jump or drop in any given week and smooth it out, right? Wrong. Because as the DOL also reported a year ago, the supposedly same “seasonal adjustment” applied to the same week in 2012, when the claims number was 390K adjusted and 359K unadjusted, should have been adjusted in the same direction. And while the 390K claims print in 2012 was indeed a 10,000 drop from the prior week’s 400K, the unadjusted number instead of being an increase, was actually a drop, one of 44,768 jobs. How does this same “recurring” seasonal adjustment look further back – after all it is seasonal, so there should be some recurring logic for a specific time of the year? The answer is shown on the chart below.

In other words, the “same” adjustment that in the past was applied to an NSA weekly change that was a greater drop than the seasonally adjusted print, somehow in 2013 ended up having its sign flipped, and made the weekly spike in claims look much better than it actually was. For the exactly same week.

One wonders just what other goalseeking intentions (and directive) the BLS had when it ordered the Arima “adjustment” software to make such a radical departure in this specific week?


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/hI0YhJM-Rpk/story01.htm Tyler Durden

A Glimpse Inside The Department Of Labor's Curious Initial Claims Seasonal Adjustment

Something curious happened earlier today when the DOL revealed its latest initial claims number: while the seasonally adjusted print declined by 10,000 to an expectations beating 316K (a change that identically matched what happened to the Seasonally Adjusted print a year ago), the unadjusted number rose by 37,229 to 363K. That’s ok: after all that’s what “seasonal adjustments” are for – to take a volatile number which historically posts an abnormal jump or drop in any given week and smooth it out, right? Wrong. Because as the DOL also reported a year ago, the supposedly same “seasonal adjustment” applied to the same week in 2012, when the claims number was 390K adjusted and 359K unadjusted, should have been adjusted in the same direction. And while the 390K claims print in 2012 was indeed a 10,000 drop from the prior week’s 400K, the unadjusted number instead of being an increase, was actually a drop, one of 44,768 jobs. How does this same “recurring” seasonal adjustment look further back – after all it is seasonal, so there should be some recurring logic for a specific time of the year? The answer is shown on the chart below.

In other words, the “same” adjustment that in the past was applied to an NSA weekly change that was a greater drop than the seasonally adjusted print, somehow in 2013 ended up having its sign flipped, and made the weekly spike in claims look much better than it actually was. For the exactly same week.

One wonders just what other goalseeking intentions (and directive) the BLS had when it ordered the Arima “adjustment” software to make such a radical departure in this specific week?


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/hI0YhJM-Rpk/story01.htm Tyler Durden