Host youre watching booktv on cspan2, and now joins us live is the author of flash boys. Michael lewis, what is a flash boy . Guest the heroes of the book are the flash boys, and theyre people that discover the stock markets got something funny going on and seek to find out what it is and then build a mechanism to prevent predators in the stock market from getting to prey. Its called flash boys for a couple of reasons, actually. One is that the solution that the main characters come up with requires them to be faster than the highspeed traders who are the predators in the stock market. So theyve got to be, i wanted speed in the title, but i also wanted kind of superhero in the title because they were these, i mean, these characters presented the story, i felt. Theyre not doing anything unnatural, but they do have these weird powers in the Financial Markets right now, and the powers are powers to explain complicated things to people, the power to kind of engender trust in others. But th
Been exposed that the problem can be dealt with. The regulatory process can do the things it needs to do which isnt necessarily introduce one new regulation. You see what happens with a very wellmeaning regulation. I think the two things that people in congress who are concerned with this issue and regulators should always keep in mind is that everything should be in the direction of increasing transparency, genuine transparency not the radical transparency where people will know what is happening rather than digging through 800 documents. Actual transparency and two being very sensitive to the incentive system they are creating in the financial markets. People respond to incentives. That is the story of wall street and the various crises we have had. People are just answering the call of incentives and when the incentives are bad the behavior is bad. Host finally Michael Lewis i was a little confused by the last chapter. We need to tell everybody what it is and they can pick up the bo
That. Not distracted. Thats what i need to hear more than anything else. When i go out to talk to the airmen, i dont say how do we weapon or a better airplane. I get questions about Retirement Plan and sequestration. Its all of the details of money. I dont want them to worry about that. Well do all we can to take care of them in that regard. The nation is not going to let in those ways. Well come to agreements that make sense over time. On theed to keep focused job. Because theyre incredibly good at that. Yeah, the thank you all and happy holidays. Chief says. The theres been a lot of variables paying out over the course of the year. A number are still left to play out that are bigger than that. Pledge to the airmen that i see around the air forces, we decisions that we can as quickly as we can, as we can to gety as the air force back to new normal in and out of uniform could focus on the osition to get past the decisions we shouldnt have to deal with that have been voiced of the budge
Ill make the closing comment on this issue, which seems to me the fed has sort of been between silla, we tried very hard to create a fed that would not be subject to political control and manipulation, and countries like argentina, you see what happens when Central Banks are subject to political manipulation, but we tried to offset that with much more private sector influence and private sector influence, but the problem is, you fall into the other trap then of being subject to too much industry influence, and i think thats been a continuing struggle with the fed, how do you actually remain balanced on the high tension wire, right, between the two threats, and i think the other thing about the new york fed in 2008, steven friedman, who was the former chairman and still a director of goldman, was on that board, remained on that board even after goldman became a Bank Holding Company, which technically wasnt allowed, and in addition brought significant amounts of stock after goldman becam
This mornings headliner citigroup. Well have analysts looking to earn 1. 17 on revenue of 19. 7 billion. For now im going to send it over to our good friend, michelle. Michelle . In global news china is the big story today. The economy there slowing further in the latest quarter. Second quarter gdp grew by 7. 5 down from 7. 7 in the previous quarter. But in line with the average and a list forecast. Meantime chinas implied oil demand rebounded in june to the highest level in four months. Among the reasons, refineries returned for maintenance. Analysts say they still expect growth in oil used to be roughly flat. Eu Officials Say talks on resolving a trade dispute over solar panels reached an impasse. An august 6th deadline is looming for an increase in tariffs. If the deal isnt reached, chinas Solar Energy Industry could have products face average eu tariff for near. An investigation into the cause of that friday fire on an ethiopian airliner. It was a 787. Unbelievable. Theres no evide