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Re: Playing field? More like a craps table
  • 7/15/2013 8:54:35 AM
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Good stuff Lyndon

Re: Playing field? More like a craps table
  • 7/12/2013 8:36:24 AM
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..

Seth writes


The markets will never be a fair playing ground, the best we can hope for is less unfair. 


 

Several postings in my Readerboard thread White House Twitter hack & high-frequency trading give some idea of today's stock trading market environment, now dominated by (human-programmed) robots racing against one another in a kind of frenetic chaos.

The thread provides several links, including an embedded video depicting graphically a half-second of trades "slow-motioned" down to a 6-minute presentation.

 

Re: Playing field? More like a craps table
  • 7/12/2013 12:08:56 AM
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The markets will never be a fair playing ground, the best we can hope for is less unfair. 

 

I think this Southpark video says it all. "And it's gone" http://youtu.be/-DT7bX-B1Mg

Re: Playing field? More like a craps table
  • 7/11/2013 1:54:33 PM
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..

SaneIT writes


I don't know that I'd call the current market a casino that implies that 100 people could walk in off the street and the odds would be equal for them.  The way high volume trading has changed the market with millisecond transactions it's very hard for anyone to just walk in and share those odds.  I see it more as a simulator being manipulated by the fastest most powerful computer in the room.  The run away trading a couple years ago that resulted in shutting the market down temporarily is a good example of this.


 

I used the casino metaphor to convey what I see as reckless risk-taking, which seems to be pretty much the gist of what happened to bring about the big 2007-2008 market crash. Certainly, for many participants, the odds are not even, so it's a rigged casino. Whatever metaphor one uses, the big picture is that a relatively tiny number of powerful people are playing wantonly with gigantic resources, with possible outcomes that affect the lives of all the rest of us.

High-frequency trading has carried this to what seems to me an absurd point — total reliance on algorithmic models that run far beyond the ability of human cognition to see what they're doing or where they're heading.

Several post-crash analyses have fingered over-reliance on algorithmic models as a major factor in the previous big collapse.

 

Re: That's not fair!
  • 7/11/2013 12:26:17 PM
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I think it's better now.  Here we are talking about one report. Once it's posted to the internet.  We all have access.  I don't see how anyone can say that the internet hasn't leveled the playing, at least somewhat.

 

Sure there will always be insiders, but picture a pre-internet situation.  We in the mid-west knew nothing, till days, weeks, months later.  Till it was printed in the paper.

Re: That's not fair!
  • 7/11/2013 11:50:15 AM
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The big guys will always have a leap ahead the little guy in the business. It is all about who has more financial weight and has more connections. Even if everyone has equal access to the US financial system, the big investors will always find a way to get other information that may not be accessible to everyone and use it to their advantage.

Re: That's not fair!
  • 7/11/2013 8:14:45 AM
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Day traders unite!

Re: Playing field? More like a craps table
  • 7/11/2013 8:13:01 AM
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I don't know that I'd call the current market a casino that implies that 100 people could walk in off the street and the odds would be equal for them.  The way high volume trading has changed the market with millisecond transactions it's very hard for anyone to just walk in and share those odds.  I see it more as a simulator being manipulated by the fastest most powerful computer in the room.  The run away trading a couple years ago that resulted in shutting the market down temporarily is a good example of this.

Re: That's not fair!
  • 7/11/2013 8:09:05 AM
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Did the little guy ever have equal access to the US financial system- even before computerized trading?

Playing field? More like a craps table
  • 7/10/2013 11:29:20 PM
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..

Noreen writes


This is just the very tip of very deep issues within the financial field. Level the field? Not in our lifetime


 

Today's financial market climate is more like a casino craps table or roulette table than a "playing field". It's huge a computerized casino with gazillions of very greedy players all trying to out-maneuver one another.

Level playing field? Fair play? Hello?

 

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