I agree. Alternately, one could make a Darwinian analogy. The market should accommodate as many strategies as possible(biodiversity) to ensure its stability. Th

I agree. Alternately, one could make a Darwinian analogy. The market should accommodate as many strategies as possible(biodiversity) to ensure its stability. The market has changed to incorporate new, high-tech strategies, but this is actually a good thing as it can increase diversity - so long as no one strategy is dominant. An ideal market would snap to an exact valuation of companies and commodities, and adjust instantly with each passing second; but our markets are not sufficiently informed on the fundamentals to do such a thing. Hence we'll always have some trading action take place around the true price, in which speculators attempt to beat the market psychology. What we're doing is accelerating the speculation, shortening the timeframes for everything; this doesn't just increase liquidity, but also increases the average spread of prices over a given time period. This could be seen as a better reflection of market uncertainty over true price.