The fact that the people doing HFT aren't forcing anyone to trade with them and they're still making money is proof that they are creating value.
For every trade they made, there was someone on the other side who implicitly thought the trade was worthwhile. If someone doesn't want pay more than a certain amount for a stock, the solution is simple, place a limit order.
High-frequency traders are just the latest type of market maker. They are essentially bookies. Of course they make consistent profits. They are middlemen who match buyers with sellers. Smart bookies only serve as intermediaries and take on little risk.
Michael Lewis has made a career out of calling Wall Street ugly names. He's a great, entertaining writer, but never forget that what he writes is sensationalism at best and propaganda at worst.
For every trade they made, there was someone on the other side who implicitly thought the trade was worthwhile. If someone doesn't want pay more than a certain amount for a stock, the solution is simple, place a limit order.
High-frequency traders are just the latest type of market maker. They are essentially bookies. Of course they make consistent profits. They are middlemen who match buyers with sellers. Smart bookies only serve as intermediaries and take on little risk.
Michael Lewis has made a career out of calling Wall Street ugly names. He's a great, entertaining writer, but never forget that what he writes is sensationalism at best and propaganda at worst.
I've got the dick so I make the rules.
-Project Pat