Did you see the 60 Minutes report on Michael Lewis' new book, "Flash Boys," that reveals some of the ways that high speed traders work the stock market to their advantage.
Here is an excerpt from the intro.
Steve Kroft: What’s the headline here?
Michael Lewis: The Stock Market is rigged. The United States stock market, the most iconic market in global capitalism is rigged.
Steve Kroft: By whom?
Michael Lewis: By a combination of these stock exchanges, the big Wall Street banks and high-frequency traders.
Steve Kroft: Who are the victims?
Michael Lewis: Everybody who has an investment in the stock market.
The 60 Minutes piece has a interesting explanation of what is happening.
For an even better one, click to watch this Michael Lewis interview on Bloomberg, where he defends his claim that the market is rigged.
via Bloomberg Television's “Market Makers.”
Let me know if you want to talk about high frequency trading or what is likely to happen as a result of press coverage like this and the ensuing regulatory scrutiny.
We live in interesting times.
