Monday, 5 September 2016
Here is an example of how Wall Street has "fundamentally changed" from 2008 to 2016.
- Human traders have been replaced by High-frequency computers driven by algorithms. Algo-bots.
"Program trading" is much more profitable for the companies using it. Not only are all those salaries and bonuses 'saved' but the 'bots' can front-run client trades and skim a little more off the top for the company on each trade as well.
- Then there is the added utility of being able to 'spoof' trades and the market itself, pushing the price point around the plate at will.
Retail traders (affectionately called "muppets") no longer have a chance against this system.
- The quaint ideas of 'price discovery' and/or a 'free market' are quite extinct today as 'trading' is only between computers and not people.
Much as the media complex has only a handful of owners (six at last count), there are only a few trading houses that control these computers.
- The result is the same. Media and financial markets can be 'coordinated' and 'orchestrated' [read: rigged] to reflect a virtual reality that neither has real substance or relation to facts. The "unreal" has been made to seem "real" solely because that's what we're told it is, not because that is what it is.
From Theo Spark at 08:58