WAMU’s Diane Rehm show covered securitized automobile loans. The discussion highlights many of the very important policy issues concerning securitization. Click here.
New research finds that HFT is not a problem. Click here.
Don’t know whether I would recommend this arbitrage but students looking to save a few buck might want to time their textbook purchases a little earlier. Click here.
Olivier Blanchard, IMF Chief Economist, has some useful insights on the Great Recession. Click here.
I reviewed Charles Calomiris and Stephen Haber’s Fragile by Design: The Political Origins of Banking Crises and Scarce Credit 2014. Click here.
Looks like job openings might be found in this occupation. Click Here.
Summary: In summary, we don’t believe HFT profits are excessive or excessively consistent. We censure illegal front running as strongly as anyone, but it has near nothing to do with HFT per se. Canceling orders in the process of providing liquidity is key to any sort of market making, whether HFT or not. We support the right of HFTs, or anyone, to try to guess the direction of the market, using order flow or any other public information. We not only support the right, we celebrate the successful exercise of that right as it adds to public welfare by making markets more efficient and lowering the cost of investing. Lastly, we believe markets are “rigged” in favor of, not against, retail investors.
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Recently reviewed Tim Geithner’s memoirs for his years at the NY Fed and at Treasury. CLICK HERE.
High-Frequency Hyperbole – WSJ Useful perspective on HFT from a user.