Robert McDonald's  Instablog

Robert McDonald
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FROM INSIDE SILICON VALLEY: Sorting the truth or likely truth from the noise is a key attribute of the successful investor. My commentary is a distillation of some of this effort relative to particular stocks and investment areas. My publishing at this point in time is limited to the blogsphere,... More
    Aug 28, 2011 12:29 PM
    High speed trading operations owned by banks and hedge funds make billions of dollars each day by the use high speed computers running elaborate algorithms. These algorithms are designed  to detect stock and  commodity market imbalances and make profitable trades on the discrepancy, discrepancies and trades that are invisible to other market participants. These imbalances may only last microseconds and can only be detected by the high speed systems owned by these operations. This is a legal way of stealing from what should be a free market trading system that would normally provide equal opportunity for every trader. The end result is the equivalent of a tax on any affected trade, a tax that takes from potential profits and adds to loses of others. This kind of market manipulation is not covered by current financial regulation but needs to be.  Right now it is a legal way of taking unfair advantage of other market traders and is a tax on America's overall economy at a time when the economy can least afford it.

    Let's find other more equitable ways to re-capitalize the banks.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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