High Frequency Trading Could Spark Our Next Crisis
Posted at 1 p.m. on Feb. 7
Nick Baumann: “Stock exchanges can now execute trades in less than a half a millionth of a second—more than a million times faster than the human mind can make a decision… As technology has ushered in a brave new world on Wall Street, the nation’s watchdogs remain behind the curve, unable to effectively monitor, much less regulate, today’s markets.”
“Imagine a runaway algorithm at a too-big-to-fail company like Bank of America… Years of mistakes and bad decisions led to the 2008 collapse. But when the next crisis happens, it may not develop over months, weeks, or even days. It could take seconds.”
