Is high frequency trading wagging the dog? Don’t worry, government tell us, all is well.
Sorry for the really long title, but the Mark Buchanan article at Bloomberg suggests the government sleuths unpacking the Dow Jones Industrial Average flash-crash—a 600 point swing n a matter of minutes—of two years ago have missed the boat.
- Buchanan’s conclusion: a flash crash could happen again (or it could be even worse).
- The innocent were assigned culpability.
- Terms were redefined/contradicted.
- Facts were ignored.
Other than that, all is well.
Instead of more competent government sleuths—or crowd sourcing the problem—simply more government would be a good start towards alleviating any real concerns (if they really existed, of course).