Who is ZeroHedge?

Oct 18, 2011
J. Webster
Comments Off on Who is ZeroHedge?

The most interesting financial blogger on the web just happens to be anonymous and go by the name of Tyler Durden. Yes, that’s the name of Brad Pitt’s character in the movie Fight Club. The blog is called ZeroHedge, and a Mr. Durden posts throughout the day, smashing rumors and bashing the talking heads on TV who think they know what they’re talking about.

And that’s really what blogs are all about and what they’re supposed to do – shining a spotlight on lies and bringing the truth out of the dark. If you are trading stocks, ZeroHedge is a must read. The blog will make you look at what goes on in the stock market world differently. But I’m sure you’re already reading it. There’s no rule about not telling people about ZeroHedge, too.

While ZeroHedge remains more or less anonymous, NY Mag did a piece on the blog a few years ago that gives you some insight into what exactly it’s all about. It turns out ZeroHedge is a collection of people in a way, but was started by a former hedge-fund analyst named Dan Ivandijiiski.

Last spring, in a far corner of the Internet, an unknown blogger began to piece together a conspiracy theory: The investment bank Goldman Sachs was using sophisticated, high-speed computers to siphon hundreds of millions of dollars in illegitimate trading profits from the New York Stock Exchange, invisibly undercutting the market and sidestepping the regulatory reach of the Securities and Exchange Commission.

Only a few loyal readers paid attention to the blog called Zero Hedge, a no-frills site full of arcane analysis decipherable only by finance professionals. But when a former Goldman Sachs computer programmer was arrested for allegedly stealing software codes used for the firm’s electronic trading arm, and a federal prosecutor was quoted saying the codes could be used to “manipulate markets in unfair ways,” the once-obscure blog ignited a chain reaction. While on a golf outing, an editor at the New York Times learned from a friend who worked on Wall Street that the Zero Hedge allegation was the talk of the industry, and an assignment ensued. On July 24, the Times published a front-page article on so-called high-frequency trading and its potential abuses, which in turn prompted Chuck Schumer, a member of the Senate Finance Committee, to draft a letter to the SEC that same day. Twelve days later, the SEC signaled that it was considering a ban on the very computerized trading that Zero Hedge had attacked.

Full article is here.

Related Posts Plugin for WordPress, Blogger...

Comments are closed.