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Michael Lewis: Nobody Understands the Stock Market

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April 2 (Bloomberg) -- "Flash Boys: A Wall Street Revolt" Author Michael Lewis discusses his book, trading and the stock market on Bloomberg Television's "Market Makers." (Source: Bloomberg) -- Subscribe to Bloomberg on YouTube: http://www.youtube.com/Bloomberg Bloomberg Television offers extensive coverage and analysis of international business news and stories of global importance. It is available in more than 310 million households worldwide and reaches the most affluent and influential viewers in terms of household income, asset value and education levels. With production hubs in London, New York and Hong Kong, the network provides 24-hour continuous coverage of the people, companies and ideas that move the markets.
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Text Comments (643)
tsuba14 (5 hours ago)
wow bloomberg, please get these idiots away from interviewing... fail.
Clarence Charping (15 hours ago)
All the back door deals and Special Treatment is just a repeat of the Stock Market Crash in the 20’s that took a LONG TIME for the economy to recover. Sad. Yeah everything this guy says is the TRUTH.
Justin Stein (1 day ago)
4:39
Xenu#Scientology (2 days ago)
I see capitalism as the problem, but i realized this system is a serpent that is eating its tail.
Belladonna xafar (4 days ago)
he does not let anybody talk!
benevolent dictator (4 days ago)
Michael Lewis being polite with the ignorant belligerent. Humorous tragedy...another movie
benevolent dictator (4 days ago)
Dumb-ass TV personality has no idea what his challenge is challenging. Michael Lewis delivers the reality and the egos of the TV personalities can not believe they have been lied to or they have a lobbyist p(L)aying them to perform in there favor.
Brinner Dang (4 days ago)
This is not the first time I've heard of this happening. I came here to learn more about the subject. In between interruptions I learned that these two moderators never heard of google or prepping beforehand. @ssholes.
masny vlas (5 days ago)
iterveiwer is clearly jewnited
Oskar Thunberg (5 days ago)
Screening during interviews, that's American tv to me.
Sean J (5 days ago)
its embarrassing how much they interrupt the guest
Todd Lavigne (5 days ago)
HRT must have killed scalpers, but I don't see how it would have killed swing or longer term traders. If the market was truly rigged then nobody ( the public ) would ever make money and wouldn't the vast majority of money would leave the market ???? why would you invest or trade if you had 0 chance of a return?
Enclave Texas (7 days ago)
These reporters suck. Shitty listening skills and comprehension along with an inability to ask relevant questions.
Ryan (7 days ago)
Bloomberg and CNBC hosts are always so clueless. Just repeating talking points
Judean People's Front (9 days ago)
It's a FRAUD that simple
Only milliseconds who cares. I trade Myself, its easy. Who needs another trader.
CJ F (10 days ago)
Michael Lewis continues to spew misinformation about these topics to sell fear and books. Most investors and traders should not be fearful of HFT algos and trading. The effects of HFT are better for individuals because we are constantly getting priced improved, as HFT firms compete for our order flow. The times that we should be fearful of HFT is when they decide to leave and liquidity dries up. This would mean that there is no longer any bids/offers to help offload our positions when the time to is crucial. The argument that HFTs do not have skin in the game is also incorrect. Unless they are spoofing (which is illegal), they are providing liquidity to the market. This means they are constantly playing between the bid-ask and trying to collect their piece in the value creation in the process. It is no different than aspects of real estate and people taking their share. I would rather that I have to give up .01 spread so that the HFT can get their .01 to get the position on that I want, than pay .05-.10 (OR MORE) spreads in market dynamics like Lewis is advocating for. Algorithms are searching the market for what their models declare as inefficiencies or mispricings as well. They are willing to build a position that the model claims is mis-priced, which they will quickly offload when the situation presents itself. When playing in deep, liquid markets - this often can happen in seconds.
gshiohara (10 days ago)
the reporter got crushed in his attempt to play devil's advocate
Philip Giacalone (11 days ago)
This Bloomberg host are clearly defensive about the fact that the market IS RIGGED. It bothers me that obvious facts are questioned and denied by these Bloomberg hosts. Just because trading fees are lower does not mean that the system isn't rigged. Hello! These are 2 completely different things. These 2 Bloomberg hosts are clearly paid dupes. Nobody is as stupid as they are acting.
Dutchy McDutch (14 days ago)
Dude, why the fuck are you defending people for who are essentially insider traders? Being critical is one thing but Lewis is absolutely right that front running a trade is immoral and it should be illegal.
Alexis Martial (14 days ago)
1/ the hosts are biased [read "bought"], they know what is the topic, they just play around 2/ the real solution is go back to daily [or twice] price arbitrage
Alexis Martial (14 days ago)
Just give me ANY scientific study that shows real-time trading create value ;-)
Joshua Collins (15 days ago)
I want to punch both of these hosts in the face. Especially the guy. HFT adds no value and are just milking the system and creating risk.
Der Gorghast (16 days ago)
Lewis is always a great read! A at times pedestrian, but mostly erudite read. Go Michael !! You be the man!
D Haley (16 days ago)
there is no doubt the stock market is rigged, pump and dump stocks and IPO's are rigged all the time and no one even questions it. insider trades so many ways that the market is rigged
nose job, boom - why do woman make themselves aliens - and yes the market is rigged, by billionaires - who if they buy or sell it changes a companies value. If you own 90% shares in a company and you sell, what would happen to the price? - then all you need is a close group of friends with less money to give them a heads up when you are going to buy or sell. Thus you control the market and a few friends benefit with you by getting rich. On another note i get why he "the interviewer" is trying to defend or be against his notions - cause can't you see what he (the other guy) is doing. He is spouting out the truth of the stock market - being that the truth would set off a whole lot of investors, bringing down the economy. Funny how we lie , to keep the lie going hey. lol
Mark Yates (17 days ago)
The stock market is artificial these days. It's heavily skewed. It's long since been propped up with things such as quantitative easing and other forms of manipulation to keep it from crashing out. It will stay up so long as the federal reserve wants it to be up. There's constant intervention these days. When it does crash it will crash very hard.
bill tomson (17 days ago)
Why is it that the market says bid and ask then I go to buy something and the ask goes up as soon as I put in an order? It is a scam
Jughead Smith (17 days ago)
Cool.. so basically nobody use market orders anymore. Idk about what everyone else is using but if i send a market order in Questrade it will get filled at the best possible price at the time of execution i've gotten filled at lets say 2.31 when my screen said the price was 2.32 and so on. The only time i will send market orders is in a fast paced rally watching the 1 minute chart. Anything other than a rally i use limit orders only.
Daniel Johnson (19 days ago)
He didn’t explain this well.
Gar Leto (22 days ago)
Finally exposed..
Luis Ortiz (24 days ago)
endudstras que estan de mas
Luis Ortiz (24 days ago)
si se deve genarisal
Luis Ortiz (24 days ago)
casino depens wat dec es un fklow
Todd Andrew (27 days ago)
Buy and hold.
fors2345 (28 days ago)
Interactive Brokers. No HFT . Totally New Exchange. The Best, Fairest Brokers in The World. Absolutely No Front Running.
backspace4353 (1 month ago)
wow that is so close to what is going on. Wish the interviewers would let him finish and stop interrupting him.
steven padilla (1 month ago)
Like eddy Murphy said” you two are just a couple of bookies”
Hardware Software (1 month ago)
The interviewers didnt read the book and are ignoring his points. Idiots in suits.
Adam Momot (1 month ago)
What book are they referencing?
Ol Skool Trey (1 month ago)
Whistleblowers make money from their claims, as long as they can publicize their ideas, theory. When whistleblowers try to convince these industry pawn-soldiers (esp on TV), they'll simply play dumb. This applies to almost any industry.
Jacob White (1 month ago)
And that is why the best thing average Joe can do is buy Vanguards VUSD’s... there is no point in trying to beat the owners of the Casino or paying fees to investment bankers who don’t have a say in the game
Daniel (1 month ago)
Wow those hosts are so ignorant. Instead of getting defensive, read the freaken book
Danny Ye (1 month ago)
Arguing against people who twist your words and point into something completely different is the most frustrating and tiring thing ever 🙄 aka when Michael Lewis tried to explain how retail investors are the easiest prey for HFTs and the male interviewer changes the subject into low-performing mutual funds? What?
Joseph Clarke (1 month ago)
“HFTs are bad for average consumers” “But aren’t fund managers also inefficient” Dear Bloomberg, fire these morons.
vrmkk (1 month ago)
Is his sole argument based on HFT?
Haggai Weiser (1 month ago)
Kudus to Bloomberg for letting interviews go long and letting guests talk.
John DeBord (1 month ago)
Plus I don't think this particular problem will ever be solved unless we somehow develop a way to instantaneously send and receive data faster than the speed of light; like through quantum teleportation or something. But that seems very unrealistic. And I don't think we have any evidence that quantum teleportation is even possible.
John DeBord (1 month ago)
But this shouldn't really matter to anyone unless you're a day trader trying to scrape orders. For swing traders, or people trading over a longer time-frame, HFTs are actually a benefit because it adds liquidity. Am I right? Or am I missing something?
tlak (1 month ago)
I always thought the stock market was a ponzi scheme, and detrimental to the American public.
rajat sharma (1 month ago)
stupidity level max...what kind of dumb reporters are brought in to cover such a lucid thinker?
jkidkiloveu bleh (1 month ago)
Bro just look at Federal Reserve, it's all joke. LOLOL
Michael Kummer (1 month ago)
Thomas Peterffy is telling a big portion of the rigging story.. In 1977, Peterffy purchased a seat on the American Stock Exchange and played a role in developing the electronic trading of securities.
gerard pacificar (1 month ago)
If the hosts could stay quiet for 30 seconds, we could all learn something. Maybe they’re stretching out the segment for time.
Willi Hansen (1 month ago)
What utter muppets these presenters are. American news really are the most stupid in the world. No wonder Trump hates them so much (and I hate Trump).
indianetizen (1 month ago)
Somebody please dismiss that dumb lady . No offence, but necessary.
Roland Rick Perry (1 month ago)
Rigged suggests you won't make money, which is of course not the reality. Front-running is just one of the costs of doing business. Also in a casino, you don't have the opportunity to change your bet, after you make the bet. You can change your bet in the stock market. So that analogy has always been weak.
BOETHIUS (1 month ago)
its rigged for the losers and fair for the winners
EyeWitnessChina (1 month ago)
I understand it’s a sham. No actual stock ownership certificates are transferred. You don’t own stock ownership in a company. You simply get monetary share price action in the casino trade. You cannot hav actual equity in a listed company. You used to be able to in the past, though.
Big Jim (1 month ago)
The market is rigged.... Surprise!!!
ABC XYZ (1 month ago)
This guy is brilliant
fredocorleone (1 month ago)
When I used to put stock order trades out, I used to put my real limit order trade on the market and then quickly put a very large limit order trade on the other side, which was 10-20% from the market price...then move it slightly closer to the market price, until my real trade was completely picked up. My real trade would get taken quickly by the market-maker computers, because they also saw the huge demand from my other big-order-bait, then I'd simply cancel the other bigger order. You can manipulate the market maker algorithms with really large orders that are somewhat far away from the market price.
Kathy Ryan (2 months ago)
These two anchors are rude and condescending to their guest.
Thomas Randall (2 months ago)
Basically Michael Lewis is saying that a retail investor has no chance day trading. The small guy should only invest or at the very least hold on to shares for a year or so. That way if you get the short end by a fraction on your initial buy it will be negligible to your overall profit/loss over such a length of time. Fractions are everything in day trading and if you get the worst of it every time you open/close your position you have zero chance. This is the downside of capitalism. You get told that the only way to get ahead of the game (or at least have your savings stay ahead of inflation) is to have a stake in capitalism itself and buy some stock rather than put it in a bank account. But even then you get ripped off for doing the right thing. These institutions with all the dough take zero risk because they are just basically skimming off every retail investors trade but you have to do it because there is no other option. Even if you avoid managed portfolios which are basically a rip off, you still have to use a broker. What they take for what they do is not justified. The woman here is also right, the quotes they give you have been doctored. It probably occurs when you search for the stock symbol before executing the trade (which they make you do on the brokerage platforms). Complete con
Paul Pena (2 months ago)
Why is HFT legal? If insider information is illegal because it gives you an unfair advantage then why not HFT which gives you an unfair advantage.
J P (2 months ago)
He's speaking plain english but these "News Reporters" are complete morons.
Strayan Drongo (2 months ago)
This interviewer is an idiot
Jonathan Woo (3 months ago)
the reporters are vested in the idea the market is fair becuz their livelihoods depend on its continual operation no matter how rigged it truly is.
Rich B (3 months ago)
Michael Lewis is spot on-- Wall St is rigged against retail traders and investors .Eric and Stephanie at Bloomberg are shamefully defending Wall Street because their jobs depend on Wall Street.
Ernesto Sanchez (3 months ago)
He doesn't want an intermediary like he explains in the end. Im assuming he doesn't know what blockchain is cause blockchain could be his answer.
Jakob P (3 months ago)
So we should abandon the brokers (aka the middle men)? Also is he saying day trading is rigged, while investing long term in the stock market is fine?
manictiger (2 months ago)
He's saying HFTs are the middle men. He wants brokers to trade with other brokers with no one in between to scalp. They have that though. It's usually really shitty stocks on OTC and PINK that do that. The amount HFTs make per trade is fractions of a penny. That being said, his talk about HFTs paying brokers to delay information is interesting.
Simple Mind (3 months ago)
2 Million dollars guy explaining how's is really done, and a group of crack heads digressing from the main topic--very typical of mainstream media to keep the masses in the woods.
M. Bison (3 months ago)
so market makers get a small gain off every order. but long term market can't be rigged. short term it is.
Rxbyg Duh (3 months ago)
These reporters sound like the traders on the street pre-2008. Trust me, I was there.
Johnny Wong (3 months ago)
How did these two clowns even get into Bloomberg????????? Felt so bad for Micheal that he wasted 14 minutes talking to these two
James Louis (3 months ago)
It is a game being played by the people with the most to stay ahead of most but will never relinquish control of the world unless forced to.
Conor Patrick (3 months ago)
The Right-Wing Neo-Liberals and their media stooges will see the Trump Wall from space.....A reminder of their sociopathic disconnect.......The Transatlantic Trade and Partnership Deal that would have destroyed pay and conditions for millions binned by President Trump, LOL........No more kicking in McDonalds windows by anti globalization protesters, LOL......The look of shock and awe on the faces of the Davos crew who believe borders and taxation are a huge inconvenience.....When Donald J Trump became elected President..........Media moguls and their stooges apoplectic with rage......The Like or Dislike button!! .......From the comfort from your own home or Starbucks, LOL LOLer.........
Website guy (3 months ago)
New information. It is rigged. Buying what you guess is the long term bottom over time not all in one buy is your only chance. You must hold.
James the Ponderer (3 months ago)
Everything today is fraud, ponzi schemes, lies and scams. Most people today live in a fantasy world or they are invested in something they are going to tout. Mutual funds have a dozen hidden fees; not just one. More bad info in this video. Average citizens are the pawn in these games and are always left holding the bag.
WiseJustice (3 months ago)
Guess ((( who ))) ?
Jane Liu (3 months ago)
The lady report did not get it....
Wili Wds (3 months ago)
Typical journalists tricks , by constantly interrupting loudly trying to confuse Micheal's train of thought , very sneaky tactic !!!
agreen182 (3 months ago)
Why is there always a fking woman who won't shut the hell up and let the smart person talk?
JBTechCon (3 months ago)
I'd like to see him interviewed by two people who aren't complete idiots.
Cold Fury (4 months ago)
Dis bitch is pretty smartt
Noah Vale (4 months ago)
Buffet's strategy is to buy affordable stocks that will grow in value and hold on to them..
Deepak Jindal (4 months ago)
I do, and xan prove it, if no, then i will give 100000 usd. 91 8800468480
KB venture (4 months ago)
Wow super interesting !
Dark Ur Comics (4 months ago)
The argumentation falls flat with his first argument: Nobody owns the casino.
Joe Richard (4 months ago)
The key word or words is "Delayed Price."
Patel Vidhu (4 months ago)
Stock market is rigged. Very hard to make money.
Waran Kaurr (4 months ago)
Author rocks host sucks!!
John Batchler (4 months ago)
That is how I trade I think the stock market as a crap table roll the dice but one thing is this that he is partially wrong the fundamentals r still in play to find hidden gems he is wrong about u don't really need to be near wall St to beat it's game just do small trades to do it computers can't pick up small trades like they do in large trades no matter how much they tweak their hft computer they still can't pick it up
James Heavey (4 months ago)
Mike Lewis is a fraud- his books are really novels where the plot never changes: an upstart band fights evil dark forces in a landscape that only a few really know. It’s cheaper to buy and sell stocks then it ever was- no thanks to Mr. Lewis.
mdesm2005 (4 months ago)
Jezz Louise, listen to your guest, put your egos down and let the man speak ...
J.S.A. Libertus (4 months ago)
Three people talking past one another and misleading title. Dropped the ball on this one.
Eric P (4 months ago)
He needs to work on his stutter.
Scott K (4 months ago)
She is quite cunty.
Jim Vetromila (4 months ago)
OMG, The stock market is rigged !!! 😆😆😆 Who knew ???
Philip Giacalone (4 months ago)
Both of these Bloomberg hosts are jaded dupes trying to distract us from the undisputed facts Michael Lewis is presenting.
Rick Believes (4 months ago)
Lewis is an idiot.

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