Selling Trust and Transparency
// Posted by Ginger on 06/04/2015 (6:57 PM)
There are many things that come to mind after this week’s readings. Two sayings I have heard many times in particular, The first one is, “Follow the money!” Whenever there is something that does not seem right or illegal, just follow the money. Another saying, this one is from my dad, “The sooner you realize that life isn’t fair, the better off you will be.” Of course people with money are getting to trade faster. Of course people with power have the advantage. It is not fair, but, what can be done about it? I just think it is funny that we think that trading stocks is set up for everyone and it is fair.
We read in the article, High Frequency Trading: Networks of Wealth and the Concentration of Power, “…that in many ways the powerful have become more rather than less powerful due to digitization; that the powerful have a great deal of influence over how digital tools and effects are distributed throughout the world and can and do monitor and control distribution of power.”
I can see why some would think that a computerized system would be a leveling tool. We all have the internet, some with greater speeds, we all have money, some have more, we all have the same opportunities to buy, no we don’t. I saw this story on 60 Minutes, and it proves that it really isn’t a system that is fait to all of us. michael-lewis-stock-market-rigged-flash-boys-60-minutes. Brad Katsuyama is offering the transparency that digitization was supposed to give us in the first place. He is selling truth, even he is amazed.
The very scary thing that is mentioned in the article and in the 60 Minutes clip is there is really no regulation. Even the up-fronting mentioned is not illegal. From the article, “that is to say that it is not at all clear anymore who is in charge of the securities markets…” The machines have taken over. Only when people like Brad Katsuyama question what is happening will there be change.