Rigged markets: Michael Lewis

roaminblue

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For anyone with an interest in the financial markets, Michael Lewis (Author of "The Big Short", "Moneyball" and "Liar's poker") has released a new book called "Flash Boys".

Its basically a claim into the idea that high frequency trading firm's have meant that stock markets are now basically an excercise in futility for many investors.

Really interesting chap, I went to a talk of his last night. Hes an intelligent guy, and certainly passionate about his cause.

http://en.wikipedia.org/wiki/Flash_Boys

In short, the book starts as an investigation into what Lewis believes is a rigged market. He comes across a guy called Brad Katsuyama, foremerly head of trading at RBC in NY. Katsuyama is creating a new exchange called IEX, which HFT's are put on a "lag" meaning they can't influence the market prices quite like they can in open markets.

There was a recent debate on CNBC, where Katsuyama and the head of the BATs exchange (one of the exchanges accused of allowing HFT's to use predatory tactics) had a bit of a verbal.

http://www.cnbc.com/id/101544772
 
A

Anonymous

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I've no evidence or knowledge of these things but at a higher level I've always thought a group of mega rich individuals take it in turns to make obscene amounts of money, with one half the group the money makers in an upturn and the other half the money makers in a downturn.

Laugh away.
 

roaminblue

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2,991
strongbowholic said:
I've no evidence or knowledge of these things but at a higher level I've always thought a group of mega rich individuals take it in turns to make obscene amounts of money, with one half the group the money makers in an upturn and the other half the money makers in a downturn.

Laugh away.

In what way, mate?

I think the incentives of different governments and those in power are not neccessarily aligned. So I think this sort of co-ordination would be hard.

There are inflation linked bonds, so I suppose certain people do make money in periods of inflation, but I'm not sure whether I'd agree with you on the whole.
 

totallywired

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Gorton. Aiso on the back row at West Brom.
roaminblue said:
strongbowholic said:
I've no evidence or knowledge of these things but at a higher level I've always thought a group of mega rich individuals take it in turns to make obscene amounts of money, with one half the group the money makers in an upturn and the other half the money makers in a downturn.

Laugh away.

In what way, mate?

I think the incentives of different governments and those in power are not neccessarily aligned. So I think this sort of co-ordination would be hard.

There are inflation linked bonds, so I suppose certain people do make money in periods of inflation, but I'm not sure whether I'd agree with you on the whole.
They are all bent twats, no mercy for these fuckers.
 

roaminblue

Well-Known Member
Joined
27 Apr 2008
Messages
2,991
totallywired said:
roaminblue said:
strongbowholic said:
I've no evidence or knowledge of these things but at a higher level I've always thought a group of mega rich individuals take it in turns to make obscene amounts of money, with one half the group the money makers in an upturn and the other half the money makers in a downturn.

Laugh away.

In what way, mate?

I think the incentives of different governments and those in power are not neccessarily aligned. So I think this sort of co-ordination would be hard.

There are inflation linked bonds, so I suppose certain people do make money in periods of inflation, but I'm not sure whether I'd agree with you on the whole.
They are all bent twats, no mercy for these fuckers.

Who is "they"?
 

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