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Too Much Michael Lewis


Noah Smith, Noahpinion, No one really knows if HFT is good or bad, here.

Here’s a similar post by Craig Pirrong, who shares my uncertainty about the costs and benefits of liquidity and informational efficiency, but who is slightly more confident about the net effects of HFT on informational efficiency.

David Glasner has a great post on the topic as well. The biggest cost of HFT is probably the resources that are wasted on “information tournaments”. I’m setting up a lab experiment about this very topic, in fact. This problem was pointed out in a famous 1971 paper by Jack Hirshleifer.

Bob Lefsetz, The Big Picture, Flash Boy Rules, here. This reads like it was penned by the drunk uncle seated next to you at a family dinner party, oofta blogs suck. Brad Katsuyama wonders why the Moon is following us. Searches for answers. Lewis writes about the ensuing intellectual  Odyssey. Sort of a Lose Lose scenario for understanding stuff.


Brad Katsuyama couldn’t understand why trading had changed. He searched for answers. It was a long torturous path. He found them. If you’re not busy questioning, you’re busy dying.


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