Flash Boys, Author: Michael Lewis.
By Matthew O’Brien – It’s Wall Street at its most socially useless. HFT (high-frequency trading) funds aren’t allocating capital to where they think it’ll be most productive. HFT funds are allocating capital to where they think other people will put it 50 milliseconds from now. It’s a tax on everybody else. And it’s a tax that has basically no benefit. Sure, HFT funds defend themselves by saying they’re increasing liquidity, but increasing liquidity is the last refuge of bullshitters.
Economist Paul Samuelson [2, 3, 4] had it right all the way back in 1957: knowing (or trading) something one second before everyone else is personally profitable and socially pointless. more> http://tinyurl.com/mkg5643
- U.S. stock markets are rigged, says author Michael Lewis | Reuters
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- The depressing truth behind Michael Lewis’ Flash Boys: Even the world’s top investors don’t understand today’s markets, Matt Phillips, qz.com
- We knew someone was stealing from us, Turney Duff, CNBC
- “The Stock Market is Rigged!”, Joshua M Brown, thereformedbroker.com
- Michael Lewis’s flawed new book, Felix Salmon, Reuters
- Why banks, hedge funds and Silicon Valley all want their own stock exchanges, Tim Fernholz, qz.com
- Scrutiny for Wall Street’s Warp Speed, Michael J. De La Merced and William Alden, NYTimes.com
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