Getting to the Bottom of the “Flash Crash”

May 12, 2010 12:00pm by Barry Ritholtz

Tech Ticker:

Comparing them to “a friend who lends an umbrella on a sunny day” Ritholtz says high frequency traders only add liquidity “when the market’s going up.”

It’s all symptomatic of a financial industry that’s become increasingly focused on trading and less so on creating societal benefits. “Wall Street is supposed to exist for businesses and entrepreneurs to meet capital and fund economic growth,” says Ritholtz. “It’s not just supposed to be a place where you’re playing Nintendo or Wii for money.”

Video:

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Source:
Getting to the Bottom of the “Flash Crash”: Barry Ritholtz Blames the Machines
Peter Gorenstein
May 11, 2010 04:12pm
http://finance.yahoo.com/tech-ticker/getting-to-the-bottom-of-the-%22flash-crash%22-barry-ritholtz-blames-the-machines-483454.html

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