Bump.
There was a time when the equity markets were vehicles for raising capital to fund long term investment in productive assets such as factories, ships, railroads and mines. Today the equity markets are casinos where the savings of the dwindling middle class are siphoned off to wealthy speculators.
It takes proud, confident and visionary entrepreneurs to build a transcontinental railroad, factories to produce light bulbs or a horseless carriages, and iron steamships to replace wooden boats. What kind of person does it take to operate a computer that trades pools of IRA and 401K money based on insider information? What long lasting productive assets that will enrich current and future generations are being created through these billions of computer trades in nanoseconds? Are we creating real wealth or are the traders simply taking the savings of the masses through fees and market manipulation?
If those who control the capital of a nation are short term speculators and not investors in long term productive assets, what will be the future of that nation?
The article is grossly misleading. The market information is *released* to everyone at the same time. The H.F. traders *get it* earlier, because they have a (much) faster connection than you or I do.
http://www.cnbc.com/id/100695563
It’s not fundamentally different from the way the Rothchilds used a network of carrier pigeons, to get a stock-trading edge in early 19th century Europe.
HFT is just harvesting it.