Friday, April 4, 2014

Technology Screws the Little Guy

"The US stock market is rigged in favor of high-speed electronic trading firms, which use their advantages to extract billions from investors, according to the acclaimed author Michael Lewis.
In his new book Flash Boys: A Wall Street Revolt, Lewis says that firms are using their speed advantage to profit at the expense of other market participants to the tune of tens of billions of dollars.
"They are able to identify your desire to buy shares in Microsoft and buy them in front of you and sell them back to you at a higher price," Lewis, whose book is available on Monday, said on the television program 60 Minutes on Sunday." Source: The Guardian UK 4 April 2013
      The fiscal reform act outlawed some of the egregious practices banks were using.  I thought this would reduce bank earnings, but it did not.  They are back to their old (and equally egregious) tricks.

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