Behold, the instrument of our doom. Last century it was the atomic bomb. Now, what you see here will be the downfall of our way of life. One day you will come home to find a 0$ net worth in both your 401k & IRA then wonder what happened while the Bankster fly to the Cayman Islands with as much PHYZZ as his Gulfstream will hold.
Don't worry, the cops will be around to provide security to the banks & ensure the theft is completed orderly...just like Cyprus.
You have no idea just how bonkers high-frequency trading is making the stock market until you actually see it in action.
A terrifying new video by the research firm Nanex offers just such an opportunity: It shows one half-second of trading in just one stock, boring old Johnson & Johnson, on May 2. The video slows down the trades so that the milliseconds -- thousandths of a second -- tick slowly by, and so that human eyes can comprehend what's happening.
What you see is trading gone haywire, hopelessly beyond the control of any regulators that might want to make sure all of these trades are legitimate. This flood of trading confuses even other machines, creating mismatches in orders that high-speed traders can exploit, millisecond by millisecond.
"These guys are not stealing dollars, they're stealing pennies," says Nanex founder Eric Hunsader, who presented the video at a recent Wired conference. "It's like paper cuts instead of first-degree murder." More via HuffPo
Robots Are Manipulating The Value of Your Stock Portfolios: What You Need To Know