Makes little sense to me...

dryhat

Generali wrote: »

Not certain but I don't see how a fast connection allows you to decide what someone else will pay or accept for an asset.

I don't think that HFT is 'right' in the way that it is currently being done as it gives some people preferential access to the market.

Do you have any evidence to back up your assertion as that woul be a clear form of market abuse.

Faster connections and price rigging are separate things. Sorry for the confusion.

But used together by those "in the club" they are being used to defraud private investors. These people also have the safety net of an almost bottomless pit of credit and bankers and politicians on their side.

This, in turn, has meant there are no longer any reliable price signals and the normal interaction of buyers and sellers no longer exists.

The market is being rigged and the real economy (that is, you and I and everyone else going about our business) is being bled dry by these parasites.

I may not have any evidence as such but there are plenty of commentators out there suggesting the same thing.

Loughton_Monkey

Graham_Devon wrote: »

....Just couldn't quite understand how such a disaster could see the dow up after being shut down for 2 days! Even on the share boards, investors who have years of experiences were a little confused by the situation.

There are many reasons. For example:

1. In the whole scale of US Company valuations, a mere $20bn is a pinprick on a boil on an elephant.

2. Share prices in US are just as much about China, South America, and Russia as they are about their domestic economy.

3. It has long since become 'impossible' for any one person to understand "the market". It is a combination of an almost infinite number of thought trains and sentiments, so complex that no-one can understand it.

You shouldn't be heavily invested in dead economies like the Dow anyway. Wealth is only going one way....