Return of the Flash Crash

Did you see the 60 Minutes exposé on speed trading? I've embedded the video, which explains how high-frequency trading works. It sheds light on the May 6 flash crash—why the Dow dropped nearly 700 points in twenty minutes. It's only a matter of...

Return of the Flash Crash

Did you see the 60 Minutes expos on speed trading? I've embedded the video, which explains how high-frequency trading works. It sheds light on the May 6 flash crash—why the Dow dropped nearly 700 points in twenty minutes.   It's only a matter of...

Financial Reform and the Fungus Five

Recently, I described financial reform as a “petri dish” of pending legislation. The government is tackling too many issues at the same time. Without constants—we don’t know how markets will react to all the moving pieces. It gets worse. Last...

What is High-Frequency Trading?

There’s been so much talk about the “flash crash” and high-frequency trading. Wonder what it is? Here’s a great, eight-minute  video that explains how high-frequency trading works: Norb Vonnegut