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Treating HFT as a proxy for 'Finance' is a flawed premise. Without 'Finance', you would not have: - Cheap mortgage rates - mainly due to securitization. - Chea
by dodders 12y ago
Treating HFT as a proxy for 'Finance' is a flawed premise.
Without 'Finance', you would not have:
- Cheap mortgage rates - mainly due to securitization.
- Cheap loan rates - yes, car leasers, I'm looking at you....
- Rational commodity markets. Think Starbucks, every car/computer made today.
- You get the idea.
Certainly, some aspects of modern markets appear to add little value, but the bulk of 'finance' benefits not only companies but everyday consumers immensely.
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- akgerber 12y agoThe 30-year mortgage is mostly a product of government. And in supply-constrained markets (most of the American coasts), low mortgage rates have mostly resulted in sharply higher-priced houses/land, which isn't good for anyone wanting to actually own a house. And that's one of the more benign results of mortgage securitization.
- kasey_junk 12y agoWithout market makers and other speculative market participants you would not have rational commodity markets or liquid price efficient equities. HFT versions of those market participants are dramatically more efficient and fair than the participants they are replacing. That efficiency is shared with every other participant. If you believe in public commodities and equities markets, it is extremely hard to argue against HFT and in favor of pit traders...
- maxxxxx 12y agoI agree about rational commodity markets. However, I am not sure everyday consumers are benefiting from cheap loans. I think cheap mortgages have driven up house prices, cheap student loans have driven up tuition.