Tuesday, April 1, 2014

Learn How Wall Street Has Been Rigged Against You

Here's a link to a recent interview of Michael Lewis by Terry Gross about his latest book, Flash Boys.  Lewis outlines the problem and how a group of traders figured out how things were rigged and started a new exchange to even the playing field for investors.

http://www.npr.org/2014/04/01/297686724/on-a-rigged-wall-street-milliseconds-make-all-the-difference

From the interview summary:
You'd be surprised to hear what investment banks do to get that nanosecond edge, and how they often use it in ways Lewis describes as predatory. The victims range from some investment houses to individual investors. Lewis says high-frequency trades can end up hurting the returns on your retirement accounts. The FBI, Wall Street regulators and New York's attorney general are investigating high-frequency trading, and whether it has created an uneven playing field.