i need a red button too. i need a red button every day. i need one right here for every five minutes for sitting with you people. not you. nice to have you on. don t trash lonhee. i like lonhee. will you come back? i would be happy to. are you in new york a lot? every couple of weeks, actually. why don t you stay for the next segment. can you? sure. don t leave. even though heilemann is staying. up next this book flash boys didn t win many friends on wall street. best-selling author michael lewis is next with the banking industry a year later, how is it? we ll be right back.
the book. but okay. let s wake through an example. do you believe it or not? because you said it. let me walk you through an example. yes or no question. do you believe it or not? i believe the markets are rigged. okay. there you go. i also think that you re a part of the rigging. if you want to do this, let s do this. i really do. that was part of the heated argument between two operators of stock exchange markets, brad who accused bill o brien s market bats of rigging their markets by using what s known as high frequency trading. joining us now columnist for bloomburg news and author of the big short and money ball michael lewis. he brought attention to high frequency trading in his book flash boys which is now out in paperback. wow. how are you? good to have you back on the show. good. okay. so the rigging, it s happening, right? nothing fundamentally has changed. nothing? come on. name one thing. a lot of little things have
book liar s poker was for many people a primer on what went on inside those once hallowed walls of wall street banks. he wrote the book after a three-year stint at soloman brothers. last year he published flash boys who helped us all understand what wall street is up to these days. i asked him to come in and give us his own update. you were still part of a wall street where the stuff that was happening, the action was human relationships and people and now it s computer. moving that way. markets becoming automated, light speed. people program the machine. so it s the person running logic, creating rules for how this thing is going to trade. yes, wall street in liar s poker is still wall street shouting in telephones at
he wrote the book after a three-year stint at soloman brothers. last year he published flash boys who helped us all understand what wall street is up to these days. i asked him to come in and give us his own update. you were still part of a wall street where the stuff that was happening, the action was human relationships and people and now it s computer. moving that way. not all but close. all the markets are becoming automated. training is done at light speed by machines. people program the machine. so it s the person running logic, creating rules for how this thing is going to trade. yes, wall street in liar s poker is a wall street where you re still shouting in telephones. it s getting complicated but it is still comprehensible. that s one of the great things how much harder this thing has gotten to explain. it was a bit of a struggle to explain what a mortgage bond was, that was a new thing. but collateralized debt obligation or high frequency trading program is so much har
franticly as stocks pass by on the screens but that place is not where most of the trades in the $23 trillion u.s. stock market take place. almost half of the trades take place in rooms like this, without humans inside black boxesness widely known as high frequency trading, an incredibly complex process where billions in stocks is traded by computers. more specifically the competitive advantage gained by millisecond. allows traders to take advantage of small changes in the price of stock and make billions of dollars. in march, the author michael lewis made headlines with flash boys about this very phenomenon calling the u.s. stock market rigged. this month high frequency trading finds itself in the headlines again. that s because last week new york attorney generaler eric