Sunday, October 14, 2012
High Frequency Trading dilemma
High Frequency Trading (HFT) using super fast algorithms is a virus that has infiltrated stock market trading. It gives the users the capability to make money at the expense of others. It is a factor in the exponential growth of the wealth of the 1%. It is one of the products of the information revolution using vastly improved electronic devices It is an unsustainable meme. Intangible money can only be conjured up out of thin air only as long as available tangible natural resources can support materialistic operations. Those days are coming to an end as natural resources such as oil and rare earth minerals run out. Those using HFT will be in a good position to cope with the inevitable powering down that the masses will find so hard. But the 1% will be lost without the services provided by infrastructure before it decayed. The denizens of Wall Street are reliant on computing serves such as HFT so will suffer dire withdrawal symptoms.