High Frequency Trading

In most of life, human relationships for example, I believe it makes good sense to get the facts clear and accurate before accusing anyone of anything. If I had a suspicion that a neighbor had stolen my lawn mower I wouldn’t dream of making an accusation without evidence.
Where the stock market is concerned a different set of standards apply. Jumping to conclusions is not only rational but necessary. Correctly making up ones mind with only bits and pieces of information, hunches and suspiciouns is a valuable skill. Innocent until proven guilty is great for the U.S. legal system but doesn’t apply nor is it required for figuring out what is going on in the financial arena.
My take on this is that high frequency traders engage in intentional theft. Their righteous dialog is deception plain and simple. Why do i think these things? They have no reason not to. They exist and operate at high levels where law does not apply.
Operaters in the financial market are cut out of the same mold as regular organized crime figures. Some if not most of the big money on Wall Street is one and the as the money that controls illegal drugs. Legal ways to steel money physically safe likely more profitable than illegal activities.
I am assuming things work like this because there is no reason why they wouldn’t. I am as certain of this as I am that mold will grow on moist bread that I leave on a dish.
High frequency trading exists as a way to steal your money, mine and everyone else’s. In the end it destroy the market just like too many fleas and ticks will kill a dog. As for the operators destroying the world’s capital market, they would rather not kill their cash cow but if it happens, so be it. Their profit has been made.

(Visited 9 times, 1 visits today)
0 0 votes
Article Rating

About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
This entry was posted in Daily Comments and tagged , . Bookmark the permalink.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments