Paul Kedrosky: "The providers of shadow liquidity - algorithms and high-frequency sorts - that...

|By:, SA News Editor
Paul Kedrosky: "The providers of shadow liquidity - algorithms and high-frequency sorts - that individually account for large percentages of daily trading activity... can be turned off with a switch, or at an algorithmic whim. As a result, in market crises, when liquidity was always hardest to find, it now doesn't just become hard to find, it disappears altogether, like water rushing out of sight via a trapdoor to hell."