From the 60 Minutes Archive: Rigged
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- Опубліковано 20 вер 2024
- In 2014, Steve Kroft spoke with Michael Lewis about his book “Flash Boys” that revealed how some high-speed traders worked the stock market to their advantage.
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My father always said "You don't make that kind of money honestly." If he only were around to see just how dirty it's gotten.
He knew
Your father was light years ahead of his time, god rest his soul 🙏
That’s the same thing Charlie sheen’s dad said to him in that Gordon gecko movie. Don’t forget their just spoofing the order flow. No one can manipulate a stock for more than 10-15 seconds. Hit and runs all that, there’s no manipulation tactic that I know where you can hit a stock down and keep it down.
"High-speed predators" - now that is a good expression.
Hal Hal Hal ... Space Oddity 2021
"There is enough in the world for everyone's need, but not for everyone's greed." (Gandhi)
Thank you. You said it
Greed greed greed but the time will come that they will be so miserable they always go to far with everything
@@patricesilva8004 🤞🤞🤞
True that.
Well said
Retail are seeing their IEX buys going through market makers like Citadel first. Defeating the object.
Yep. A lot of retail brokerages are eliminating transaction and holding fees, but it's because they're selling your orders to a hedge fund who's going to sell you higher priced stock so the brokerage wants you to make more trades and generate more kickbacks.
That's why the GameStop/ Reddit people have them angry
good they lost billions
Criminals on Wall Street is the norm, all of them are OUTRAGEOUSLY GREEDY and the machines used to trade are corrupt !
"We've had many asking for a backdoor." Yes, that tells you something.
The way they get around this now is through payment for order flow.
That's misguided
Also fidelity doesnt charge commission or do payment for order flow
There is always someone smarter, more creative and a good aggregator of talent to outdo whatever has already been done.
Yes and if some responsible person were prosecuted and found guilty they would likely get 90 days probation.
They know the parties who were responsible (they are physically connected by fiber optic lines), but it was a new tactic, so there were no laws against doing it. Now, there is a required minimum length of the fiber optic lines that connect to the stock exchanges, so dozens of firms have setup servers that are exactly the minimum distance from the exchange hub. Theoretically, this levels the playing field between investment firms. (But, is that enough to protect investors? Maybe it is or maybe it's not.) Plus, in the past year most brokerages have dropped their commission fees in place of favored routing (pay for order flow), so who even knows if the price you get is truly the market's best price when you place a trade. Regardless, a penny or two per share is a small price to pay for commission-free trading, so I consider that a win for investors.
Thanks 60 minutes. Great coverage. Meanwhile all across the board, we see in local news, the media, and social media video posts of "terrible scam artists" aka homeless beggars, doordash delivery drivers stealing meals, and pre-recorded violin street performers who got away with $5-$10.
This sxxt is crazy! This is why the rich/wealthy/well-connected will ALWAYS get richer while the rest of us fight over the skimpy morsels left over (if that). Disgusting!
Why do we still have financial challenges when we can actually earn real and legitimate profit through investment in crypto currency??
I can lead you through it if you let me.
And the markets are still dishonest as ever. Nothing has been fixed.
Sad that we favor the stock market environment more.
the sec is on the payroll.
billions of dollars being made by crooks and only hundreds of thousands worth of fines for their violations.
there's nowhere for retail traders to turn, because there is no one that will stand up due to payouts. absolute power corrupts absolutely.
@@toddinthemiddle They look at fines simply as a cost for doing business...
@@LesGrossman69 if one of us peasants committed anything along the lines of fraud or theft, it would not only be exorbitant fines, but likely jail time,too.
there is still a great deal of money to be made from the stock market, but when we don't know the bottom or control the top, or anything in between, it's an unfair (criminal) advantage.
maybe i'll luck out and get a sliver of pie from AMC.
DEATH CROSS OVER BITCOIN AGAIN BIT COIN DROPPING FAST ! getting rejected again😫 @32K going down more than a Kardashian 🤣below$8,000 dragging DOGE COIN Eventually Under .10 cents😫 DUMP BOTH NOW!😡
Can't believe this has so low views and outrage. People should be rioting over the thieves.
Ridiculous result of excessive greed!
Doubt that many individual investors make much money....shows on t.v. make you think you can trade and make a ton of money.....all a con game!
tax every trade .. shut down the HFTs ..
WHEN will ALL Financial Transactions( Wall Street ) be subject to a tax ???
Is this activity any different from a toothbrush changing hands from seller to buyer in a Supermarket ???
Changes demand courage and commitment .... Wake up Lawmakers !
Cheaters cheating Bigger Cheaters. Cry me a river. The market is rigged alright, but the ones who should be complaining are the regular Joe investors.
They don’t know what’s happening.
So who is responsible for HFTraders???
Exactly!! Why didn't they tell us?
Banks and other institutions
@@TruthSeeker30_ No Rubbish. Its Wall St themselves that do it all. thats why they didnt say who..
*The stock market is a good way of income because I had to leave work during last year pandemic period and all I did was to focus on the stock market*
*I must say that it wasn't so easy at first but all thanks to it by the way*
I have always believe in Stock market and other Economic activities but It's really unfair that 2021 trading and stock market is just difficult and unbelievable which is too bad now i rather invest my money only on bitcion and gain more profit in return
Yes sure Bitcoin trade is great unlike the stock market and other financial market Bitcoin has no centralized location since it operates 24hour's in different parts of the world
Bitcoin trading might make you rich if you are hedge found with deep pockets or an Expert skilled currency trader
After a successful investment you have nothing to worry about whether the rise and fall of economy or anything won't affect you make your future brighter by making good investment
Currently the rich stay rich by spending like the poor and investing while the poor stay poor by spending like the rich yet not investing like the rich
I really like this Canadian Guy!!!!!!!!!!!!!!!!!!!!
Brad, the first to figure the rigging of concert tickets, i’ve experience. I went to see seats n price, found but could’nt buy right then. Came back to it n the price jacked up. I thought it was the cookies left behind. Once i cleared then logged back in browser - the price was back to the original price ...
Retail day traders have almost no chance against this system.
Trust is paramount! The story ended hopeful. Honors to the honest people.
When getting too deep goes wrong.
I attribute, in part, my mother's death (of ALS related death by suffocation) to the money she lost in 2007. People were devastated. And these shameful Wall Street goons do not care. Their greed is evil!!!
I totally agree. My father and his wife lost their entire retirement savings in the GFC. His wife also died way too young from ALS. My father soon declined into dementia.
@@emmaevans7011 We are their survivors; we should write an anthology or something.
They are the Zionist bankers with their Unit 8200 that controls the
Worlds Intel of all systems for their NWO
Evil Greed
Horrifying Psychopaths
WHY DID THE RICH AND INSTITUTIONS NOT TELL THE PUBLIC THEY WERE BUYING CRYPTO?? INSTITUTIONAL INVESTMENT WENT FROM 1/3 TO 1/2 AND THERE WAS NO NEWS AT ALL ON IT!!!!!!!!!!!! THIS WENT ON FOR ABOUT A YEAR OR MORE.
DEATH CROSS OVER BITCOIN AGAIN BIT COIN DROPPING FAST ! getting rejected again😫 @32K going down more than a Kardashian 🤣below$8,000 dragging DOGE COIN Eventually Under .10 cents😫 DUMP BOTH NOW!😡
Good job Brad Katsuyama!
This has been going on for years it's usually pennies at the time.
The bigger deal is headline trading algorithms and even the older close caption readers
Billions in technology and billions in unethical trades defeated by basically a bunch of lead cords strung together,
This explained why stock price jump 10% the exact seconds the earning report is out, computer read the report and trade before we even get to.
WHY DID THE RICH AND INSTITUTIONS NOT TELL THE PUBLIC THEY WERE BUYING CRYPTO?? INSTITUTIONAL INVESTMENT WENT FROM 1/3 TO 1/2 AND THERE WAS NO NEWS AT ALL ON IT!!!!!!!!!!!! THIS WENT ON FOR ABOUT A YEAR OR MORE.
Wait for Robinhood in 2021. Talk about front running
And.....so what's changed since this report?
Not a damn thing.
As technology advances and we as humans give computers more and more responsibility these type of problems will arise. People will try to cheat systems to their advantage by creating strong algorithms not just in investing, but other areas of society as well.
Why do we still have financial challenges when we can actually earn real and legitimate profit through investment in crypto currency??
I can lead you through it if you let me.
You cant arrest a blackbox trading algorithm for insider trading or for anything.
Sure you can. Someone coded it to do exactly what it does.
I put in automated trade to buy a a few shares for “$1” and the price remained at “$1.01" or higher for the whole day. This mostly applies when you’re paying the market price.
I assumed it was always"fixed."
Brilliant piece!! Well done 60 Minutes!!
Veselak is slovenian surname meaning "The happy guy" :) Regards from Slovenia, Ljubljana.
it's Michael Lewis again, the most feared person on Wall Street
I'm gonna tell my kids this was The Office
So if by chance he didn't hire that Irish guy who worked for the firm that layed the high speed cable previously no one may have never figured this out. This was pure luck. " Behind every great fortune there is a crime." Balzac also the first line in The Godfather the book.
2022 is going to be crazy
Easy solution is to put federal tax on each trade. High frequency traders can fix the deficit.
They pay tax on the wash sales. But it doesn’t matter if your profit is coming from essentially taking someone else’s money for nothing
WHEN will ALL Financial Transactions( Wall Street ) be subject to a tax ???
Is this activity any different from a toothbrush changing hands from seller to buyer in a Supermarket ???
Changes demand courage and commitment .... Wake up Lawmakers !
Nothing has changed. Now we call it lag. These free trading platforms do the same thing. Nothing is free.
Here's the thing they didn't say:
If you're an American and you have a retirement plan, you are *already in* the stock market. Your plan invests in the market and uses the values they gain by their investment to fund your retirement on a group basis. So these guys were ripping *YOU* off too.
Be a shame if someone accidentally dug up the cable..
I agree😂they should
A year or two from now I feel like I’ll be watching a 60 Minutes interview with Michael Lewis talking about his new book “Bitcoin - The Rise and Fall of Cryptocurrency!” Lol
You know it, they are both scans too & those ones allow organized crime to get around the digital transfers that we can follow with real money..
Watch Bitcoin rise to 100k this year and to 1 million in the next few years
@@kimk2635, unlike fiat money?
Bots are already being used in crypto
Trading bots
I had a teacher in high school who taught the Market..I ask did he own stock and 'play'' the market? He replied "Are you crazy! NO!"
What impeccable timing algorithm..
I would put in an order for a stock and set a limit on the price, higher than the current market price. I always paid a price close to my limit. I knew what was going on, but there was nothing I could do about it. So, I stopped buying on the short term, picked a dozen long term positions and put everything else in index funds.
Would love to see a video update on this. I am sure they are trying to do something else to bypass this.
They all went into crypto
With that title, I thought this was going to be about the 2020 Presidential election.
Me too! Maybe later?
Here is the scam I see. I see a spread of Say $1 :$50 bid $51 ask. This is insanely high and the "specialist" market maker are not supposed to allow it but they do. I put an order for say 50.25. Before by order reaches the floor the computers show a bid of 50.26. I raise to 50.41. Computer to 50.42. I go to 50.51. If my order goes through the computer reverts to bid if 50.00 so I've lost 1% instantly to the computers. For most they pay $51, bid reverts to $50. Scammed out of 2%. Nothing is done because the regulators are in bed with these guys.
This was broadcast in 2014? It continues to this day. We will never learn
The actual physics behind front running fiber optic signals allows it to be legal compared to the traditional meaning of front running stock information. If you put together a smart group of engineers, lawyers, and policy writers and explain this to the SEC, laws could change and things could greatly improve.
It is a cyclical loop. Katsuyama said in a number of his talks, scandals leads to regulation. There is no such thing as a perfect regulation. All regulations have loop holes. Loopholes lead to exploitation. Exploitation leads to new scandals. And the cycle continues. Katsuyama went to the SEC and the SEC were divided into 2 camps. The older regulators thought it was an outrage. The younger regulators were sympathetic to the HFTers. So Katsuyama though he would get nowhere with the SEC.
Very interesting, unbelievable the sec allows this to go on...
American greed the country some people keep calling great I only know it for great corruption and atrocities
These guys get rich off of capitalism, and then the minute someone richer and smarter proves to be a better capitalist they cry about it. Jesus
"It didn't feel right, that people are leveraging the compensation I get for a days work, into hedge funds and corporate buyouts and limited stock options, until someone else leveraged the compensation for THAT days work, into a manipulation of the market, that manipulates the compensation for my day's work." 5:30
Type of guy that needs to be President ! Money can’t buy integrity!
Wait for “quantum computers” who do you think will be first in line for that piece of technology.
Who here is watching in 2021
AMC and GME 🚀😎
Now I know why stocks always fall when I buy and go up when I sold....
Gordon Gecko is alive and well on Wall Street.
Hedge funds Vs. High Frequency Traders... LOL ... the timing of this is interesting. given the whole GME fiasco
GME isn't over. Not even close.
This story reminds me of the Crooks on HBO Billions
Just like boxing. What beats speed...timing
Making a profit is the bottom line. Therefore, even though I like the 2 tech guys and founders because I'm a computer geek myself, I think IEX will still "find ways" to make a profit, despite their preaching of honesty. People did not invent the saying "Money is the root of all evil" for nothing.
"The 'love' of money is the root of all evil"
May be its their publicity..... if they were that honest why would they sell it to the same HFT traders whom they are blaming of front running..... entrepreneurs sell stories.....and most of them sell fake stories.
Sad thing is iex only has 2.5% of market share amongst all the exchanges
Madoff was not the only Ponzi scheme in town.
what a brilliant young guy...woe
My GAWD. I'm getting out.
How interesting that people can conceptualize that just a couple milliseconds could create a competitive advantage that is unearned and unfair but people cannot grasp the concept of privilege. It’s a problem if a one rich persons trade is given a slight advantage over the other but when you’re born into abject poverty, you just gotta work harder. Stop being lazy. Pull yourself up by the bootstraps. This entire segment can be viewed as a microcosm for the economy as a whole. When you have extreme levels of resources, you can rig the game in your favor.
The tortoise beat the rabbit...
Thank goodness for 60 minutes
So once again finance is regulating itself.
The government could have put a 5 cent tax on all trades and it would have eliminated this entire problem
Until they find a another loophole in that law to exploit. It is cyclical problem
Why is my internet not working for this particular video??? Why ? Its buffering a lot
Please restore the trust - everywhere!
It's only going to keep getting worse unfortunately.
In order to beat high frequency trading, use limit order with a price you want.
Sad what computers have done. Out of control.
basically they are cheating if the Canadian buyer's order wasn't met and in the same transaction he was being over charged that's cheating. what else can you call that?
I KNEW IT WAS IEX!!!!
There is one hole in the bucket identified in the US, and there are strategies to fix it, but I wonder, what about financial markets worldwide?
Bravo to Mr. Michael Lewis! AGAIN!!!
Invest for the long term this doesn't matter
So with all the flow toward socialism when will congress fix the worst greed
🐢 beats the 🐇 once again. Once you cut thru the bs it’s all so simple.
Coinbase is doing this!!!
WHY DID THE RICH AND INSTITUTIONS NOT TELL THE PUBLIC THEY WERE BUYING CRYPTO?? INSTITUTIONAL INVESTMENT WENT FROM 1/3 TO 1/2 AND THERE WAS NO NEWS AT ALL ON IT!!!!!!!!!!!! THIS WENT ON FOR ABOUT A YEAR OR MORE.
Interesting story but I won't be holding my breath waiting for anything, ( as far as leveling the playing field ), to change because of it ........
Exactly wall Street has endless schemes and connections
And the SEC going to do nothing!
Everyone on Wallstreet has known about this since the 80s. It started with microwave links, satellites, and direct laser links. They don't actually need a fiber optic spool. they can just delay or reroute packets in the switch, just ask the NSA about reprogramming a switch.
Fiber was too expensive in the 80s. It started around early 2000's. I was a network engineer. I worked with all the exchanges and most trading firms in Chicago and New York.
And yet they allow it to go kn
In the 80s the exchanges were not in bed with the HFTers. Back then they were not allowing co-locations and flash peek of trades passing through the exchanges. Now the exchanges are charging the HFTers $$$$$$$$ to be inside the exchange (co-location) and allowing them to peek other's trades. Exchanges are making so much money from providing access to HFTers they don't even bother charging for trades anymore.
So what's new?
So this is what ICT was talking about..
"The Hummingbird Project" is a movie based on this front-running concept...
Still rigged.
13:52 - Einhorn is Finkle
So sad seeing this and i guess things didn’t get better
Not fair!
People have devalued their sister and brothers.
Great video and the scam is even greater but Can someone explain “who the people that came faster on the trade” are?
Where did you get this video......This is a fantastic video of information
NOW look into PASCO COUNTY FLORIDA, they are stealing real property using forged documents, who will stop them? The judges and Commissioners are in on it..
Another way to win is Warren Buffet's "buy low, never sell" investment paradigm.🕯️
But how do you make money if the company never pays dividends.
he sells but more importantly he buys puts when his stock is down, hence the idea of not selling is skewed