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Charlie Munger Slams HFT: “They Are Like Rats In A Granary”
from Zero Hedge
None other than status-quo-hugger Berkshire Hathaway’s Charlie Munger took aim at the scourge of HFT this morning; blasting high-frequency traders as “the functional equivalent of letting rats into a granary,” and exclaims “it does the rest of civilization no good at all.” Buffett reminds that HFT is “not a liquidity provider, ” explaining that while it does produce volume, that is not the same as liquidity; and while the Oracle opines (incorrectly) that the small investor has never had it so good, Munger is quick to point out that the money HFT makes does not come from heaven and in fact it is the small investor who is hurt by the fact that large investors (who mostly act on small investors’ behalf) are severely impacted. Even the usually abstinent Bill Gates remarks upon HFT as “adding no value.. because when the liquidity is needed, it isn’t there.” Munger sums it up: “I don’t like it.”
Continue Reading at ZeroHedge.com…
Source: http://financialsurvivalnetwork.com/2014/05/charlie-munger-slams-hft-they-are-like-rats-in-a-granary/?utm_source=rss&utm_medium=rss&utm_campaign=charlie-munger-slams-hft-they-are-like-rats-in-a-granary
