Zero Hedge

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Zero Hedge
Web address www.zerohedge.com
Slogan On a long enough timeline the survival rate for everyone drops to zero
Type of site Editorial, News aggregation
Available in English
Launched January 2009; 5 years ago (2009-01)
Alexa rank negative increase 1478 (March 2014)[1]

Zero Hedge is a financial blog that aggregates news and presents editorial opinions from original and outside sources. It reports on economics, Wall Street, and the financial sector and is credited with bringing the controversial practice of flash trading to public attention in 2009 via a series of posts alleging that Goldman Sachs' access to flash order information allowed the firm to gain unfair profits. The news portion of the site is written by a group of editors who collectively write under the pseudonym "Tyler Durden", a character from the novel and film Fight Club.

Profile[edit]

Zero Hedge was founded in January 2009.[2] Posts are signed "Tyler Durden," a character in the Chuck Palahniuk book and movie Fight Club,[3] reflecting the news site's activist posture.[2] Despite speculation that "Tyler Durden" is a pseudonym of Daniel Ivandjiiski,[3][4] who was penalized for insider trading in New York in September 2008,[5] Ivandjiiski denies being a founder of Zero Hedge. Rather, he says he is one of several writers contributing to the site under the pseudonym.[5] In an interview, "Durden" said there were four editors at Zero Hedge[2] but another editor says there are up to 40.[note 1][3] Editors have experience in various areas of finance and operations, differing from journalists who become experts about finance as they write about it, but have no practical work experience in the sector.[2] The online newspaper publishes anonymously to protect the editors from retaliation for dissident speech.[2] Durden maintains this protects its integrity, objectivity, and independence, as well. Durden cites the First Amendment to the United States Constitution and the 1995 United States Supreme Court case, McIntyre v. Ohio Elections Commission,[2] which upheld anonymity as a right of free speech.[6][note 2]

Readership and influence[edit]

By September 2009, Zero Hedge had begun drawing more traffic than more established financial websites[5] with 333,000 unique visitors a month, impressing even those[who?] who say the news site is full of conspiracy theory and "apocalyptic world view".[4] Durden says two-thirds of its readers are from Wall Street.[2] According to Quantcast, Zero Hedge has as of 2012 a monthly global traffic of 1.8 million people.[7] Under the name Tyler Durden, Ivandjiiski was interviewed on Bloomberg Radio[3][8] and Zero Hedge has been quoted in the Columbia Journalism Review.[9]

In December 2012, Bank of America blocked its employees' access to Zero Hedge.[10]

Zero Hedge celebrated one billion views in June 2013.[11]

Bill Gross, the head of PIMCO, is an avid Zero Hedge reader. On August 9, 2013 he tweeted, "Gross: Strategists/writers I follow? Dalio, Durden, Bianco, Arnott, Aitken, Santelli, Grant, Grantham, Inker, Marks, Quaintenance & Brodsky."[12]

Matt Taibbi, in his book Griftopia, cites Zero Hedge in the last chapter as accurately assessing the level of corruption in the banking industry and credits its inside advantage. He questions why the mainstream financial media did not earlier detect the corruption at Goldman Sachs. Taibbi writes:[13]

See also[edit]

Footnotes[edit]

  1. ^ One editor has also been known to contribute using the pseudonym "Marla Singer", another character from Fight Club.
  2. ^ In McIntyre v. Ohio Elections Commission (93-986), 514 U.S. 334, Justice John Paul Stevens, writing for the majority, stated, "The right to remain anonymous may be abused when it shields fraudulent conduct. But political speech by its nature will sometimes have unpalatable consequences, and, in general, our society accords greater weight to the value of free speech than to the dangers of its misuse."

References[edit]

  1. ^ "zerohedge.com Site Info". Alexa Internet. Retrieved 2014-03-06. 
  2. ^ a b c d e f g Damien Hoffman, "First Amendment Award for Outstanding Journalism: Best Blog Zero Hedge" Wall St. Cheat Sheet (August 4, 2009). Includes interview with co-founder "Tyler Durden". Retrieved May 12, 2011
  3. ^ a b c d Joe Hagan, "The Dow Zero Insurgency" New York magazine (September 27, 2009). Retrieved May 12, 2011
  4. ^ a b Justin Fox, Wall Streeters like conspiracy theories. Always have Time blog (October 1, 2009). Retrieved May 12, 2011
  5. ^ a b c Kaja Whitehouse, "Blogger May Have a Past" New York Post (September 2, 2009). Retrieved May 12, 2011
  6. ^ "McINTYRE, executor of Estate of McIntyre, Deceased v. Ohio Elections Commission" Cornell University Law School (April 19, 1995). Retrieved May 12, 2011
  7. ^ "Zerohedge.com Site Info". Quantcast. Retrieved May 29, 2012. 
  8. ^ Tim Fox, Interview with "Tyler Durden" on Taking Stock (MP3) Bloomberg Radio. (August 20, 2009). Retrieved December 4, 2011
  9. ^ Ryan Chittum, "Insurer Alleges Fraud by Bear Stearns and JPMorgan" Columbia Journalism Review (January 25, 2011). Retrieved May 12, 2011
  10. ^ Moore, Galen (2012-12-19). "Bank of America blocks employees from reading Zero Hedge blog". Boston Business Journal. Retrieved 2012-12-22. 
  11. ^ "A One Billionth Anniversary" Zero Hedge. Retrieved July 4, 2013
  12. ^ Whom Does Bill Gross Read?
  13. ^ Matt Taibbi, Griftopia, New York: Spiegel & Grau (2010), p. 208

Further reading[edit]

External links[edit]