Via Zero Hedge...
"With Lewis' appearance last night on 60 Minutes to promote his book Flash Boys, and to finally expose the HFT (High-frequency trading) scourge for all to see, we consider our crusade against HFT finished. At this point it is up to the general population to decide
if this season's participants on Dancing with the Stars or the fate of Honet (honey) Boo Boo is more important than having fair and unrigged
markets"
9 comments:
When there's blood in the streets -- buy.
When you overhear the roofers on your roof bragging about the killing they've just made in the market -- sell.
That's being an investor. Fewer trades per year than his fingers. On one hand.
This rigging hurts speculators, the spastic in and out daily types.
The big unanswered question: Who are the people who rigged the market? Name the names.
The FTC and SEC are where on this? oh wait. All this does is affirm what OWS has been saying and i'm not inclined to side with them.
The reason I'm not inclined to side with them, is that in this case, the market is working. People figured out how to game the exchanges on the high frequency trading side by basically routing orders to points that were close than the other incoming orders were supposed to get to. With software, you can see what those orders are going to do and predict what to buy before they do. Well, the market appears to have taken care of that by the guy who discovered this gaming, but having him expose it, fight it, create his own exchange and rewire all the incoming traffic to basically do an end run around the high frequency trading guys, so that their order go off into digital lala land and come back around at the same time, so that all orders are coming together at once. No on has a fraction of a second advantage anymore.
See, it was legal, it appears, and therefore FTC/SEC were nowhere to be seen. Again, the market took care of it. This guy is going to be a billionaire if he isn't already.
Agree with Meth that the market is a kind of force of nature and will enforce its own justice, but I do think there's a real crash coming.
Again.
I love Lewis. He's able to overcome his own biases to really "get" his subjects.
And yes, of course the market is going to crash again. There's no reason why it should have been as high as it has been.
No, there is every reason for the markets to have been that high. The FED was pumping $85 billion of liquidity into the system every month for some time until eventually tapering it down to a mere $55-$65 billion a month recently. One trillion in cash every year still goes a looooonnnnngggg fucking way.
With a trillion in cash every year, you could completely corner the markets for hookers and blow, have plenty left over to buy congress, and then waste the rest.
This an old story about this. Joe Kennedy the father and gangster got out a taxi and his doorman held open the door and offered him a stock tip because he was doing great in the market. Kennedy went upstairs and cashed out all of his stocks. That is how the Kennedy fortune survived to give us the current group of rapists, murders, suicides and ambassadors.
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