I’ve said it before and I’ll say it again: automated trading in which the programs operate in lock step, something that is facilitated by the people who design the programs, increases volatility in the market.
Or, said another way, with aid of a computer in fractions of a second you can make a mistake that would have taken you a year to make by hand.
Alas the poor bankers & traders!
Yeah, some of that 1% stuff is taking care of itself. I wonder how long it will take people to figure out that a lot of income inequality is due to policy. My guess: never.
Dave, we all know income inequality is due solely to the magnificent nature of the wealthy and the miserable nature of everyone else. That magnificent nature of the wealthy is also why they can suffer so much better than the rest of us. I couldn’t possibly suffer as poignantly as they do – I can’t imagine the horror of only being able to rent a summer home in Connecticut or one month instead of four. The horror!
As to policy questions being the cause of some (at least) income inequality, that is not something anyone wants to even think about, at least not those in the public sphere. It doesn’t serve anyone’s narrative, thus they will want to ignore it. Plus the two-sides-of-the-same-coin nature of our political apparatus means that both sides profit from such rent-seeking, and don’t want to upset the apple cart.