This segment aired on 60 Minutes last night and discusses High-Frequency Trading and how the Flash Crash of May 6, 2010 (my blogpost from that day) can be linked directly to this now common practice on Wall Street. Per the information on the video, high-frequency trading now accounts for approximately 70% of the trades made on Wall Street on a daily basis and from the events of May 6, can dramatically affect the volatility of the market, as algorithms are the ones controlling the trades, not humans.
Here's the full video below...
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2 comments:
great piece. frightening how American's have lost control of the markets and the SEC is letting it all happen.
Agreed David, even scarier is the fact that there are those out there letting 100% of their retirement income depend on the ups and downs of Wall Street. The stock market has its place, but it's not "Retirement Income"...
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