Monday, April 14, 2014
theatlantic:

Everything You Need to Know About High-Frequency Trading

The stock market isn’t rigged, but it is taxed.
It always has been. As Justin Fox points out, for as long as people have been trading stocks, there have been middlemen taking a cut of the action. Now, that cut has gotten smaller as markets have gotten bigger and more technologically-advanced, but it’s still there. It’s the implicit fee that intermediaries charge for making sure there’s a buyer for every seller, and a seller for every buyer—for “making markets.”
But there’s a new kind of middleman today. They don’t work at stock exchanges or banks. They work at hedge funds, and trade at whiz-bang speeds. These “high-frequency traders” (HFT) use computer algorithms—a.k.a., algobots—to arbitrage away the most infinitesimal price discrepancies that only exist over the most infinitesimal time horizons. You can see just how small and how fast we’re talking about in the chart below from a new paper by Eric Budish and John Shim of the University of Chicago and Peter Cramton of the University of Maryland. It uses 2011 data to show the price difference between futures (blue) and exchange-traded funds (green) that both track the S&P 500. These should be perfectly correlated, and they are—at minute intervals. But this correlation disappears at 250 millisecond intervals, a little more than half the time it takes to blink your eyes. This is the “inefficiency” that HFT makes less so.
Read more. [Image: Reuters]

theatlantic:

Everything You Need to Know About High-Frequency Trading

The stock market isn’t rigged, but it is taxed.

It always has been. As Justin Fox points out, for as long as people have been trading stocks, there have been middlemen taking a cut of the action. Now, that cut has gotten smaller as markets have gotten bigger and more technologically-advanced, but it’s still there. It’s the implicit fee that intermediaries charge for making sure there’s a buyer for every seller, and a seller for every buyer—for “making markets.”

But there’s a new kind of middleman today. They don’t work at stock exchanges or banks. They work at hedge funds, and trade at whiz-bang speeds. These “high-frequency traders” (HFT) use computer algorithms—a.k.a., algobots—to arbitrage away the most infinitesimal price discrepancies that only exist over the most infinitesimal time horizons. You can see just how small and how fast we’re talking about in the chart below from a new paper by Eric Budish and John Shim of the University of Chicago and Peter Cramton of the University of Maryland. It uses 2011 data to show the price difference between futures (blue) and exchange-traded funds (green) that both track the S&P 500. These should be perfectly correlated, and they are—at minute intervals. But this correlation disappears at 250 millisecond intervals, a little more than half the time it takes to blink your eyes. This is the “inefficiency” that HFT makes less so.

Read more. [Image: Reuters]

Saturday, March 29, 2014
Why the ongoing fascination with deconstructionism and with the work of the philosopher whose radical works inspired it? Why does this philosophical strain seem strangely central to the conception of modern criticism, even as it recedes in influence? And why do these thinkers’ personal lives and ideological compromises seem unusually relevant to their work, beyond the usual scandal-sheet Schadenfreude? Richard Brody on the first three volumes of Heidegger’s “Black Notebooks” and the role of anti-Semitism in his philosophy: http://nyr.kr/1jYNngY (via newyorker)

Heidegger is one of my favorite philosophers and I’ve been perplexed by this for so long. I don’t really understand the man who produced “being and time” could have such views.

Thursday, March 27, 2014 Thursday, March 13, 2014 Monday, March 3, 2014 Tuesday, February 4, 2014 Wednesday, December 18, 2013
Source: Economist

Source: Economist

Sunday, November 3, 2013 Wednesday, October 30, 2013 Wednesday, July 17, 2013

Full Video: The Inverse Logic of Life (by AspenInstitute)

Fantastic message…

Tuesday, July 16, 2013

This brings back a lot of memories of working in Africa.

Thursday, July 4, 2013
Friday, June 28, 2013

I have never seen this show, but what a great clip!

Wednesday, June 26, 2013