Book Review: Flash Boys by Michael Lewis

Book Review: Flash Boys by Michael Lewis

By The Banker | Book Reviews, Investing, Wall Street

The Rise of the Machines Michael Lewis wrote Flash Boys to alert the non-finance world about the scourge of high frequency traders front-running investors and fracturing traditional capital markets. Lewis does not distinguish between quantitative (or algorithmic) trading strategies and high frequency trading firms (HFTs), although it’s helpful to define these terms first. Quantitative strategies [&hellip

Book Review: All The Math You Need To Get Rich

Book Review: All The Math You Need To Get Rich

By The Banker | Book Reviews, Investing, Personal Finance

I learned from my wife the concept of the “feedback sandwich,” by which she means if you want to give someone an important piece of critical advice, it’s often most strategic to cushion the blow with a compliment to start, and a compliment to finish, with the criticism nestled in between. Michael Scott in Scranton, [&hellip

Cash Transfers and Inequality

Cash Transfers and Inequality

By The Banker | Blog Posts, Inequality

Markets work great, if the goal is to 1. Maximize total output; 2. Encourage innovation; 3. Reward maximum effort; 4. Reward talent; and 5. Use resources most efficiently. As a result, limiting markets tends to impair one of more of the above, valuable, outcomes. Also, non-market solutions to problems often produce sub-optimal results in one or more [&hellip

Rapunzel and Compound Interest

Rapunzel and Compound Interest

By The Banker | Blog Posts, Investing, Personal Finance

“Daddy,” began the little princess plaintively, “I’m bored.” The poor thing is trapped in her tower for the Summer months. Wizarding school ended the first week of June, and will not start again until next Fall. Also, it’s a Sunday and her 4-year old sister, the other little princess trapped in the tower, naps deeply [&hellip

Book Review: Inside the Black Box

Book Review: Inside the Black Box

By The Banker | Book Reviews, Investing, Wall Street

I read Rishi Narang’s Inside the Black Box as a kind of primer on quantitative trading, in advance of reading Michael Lewis’ Flash Boys. Need for a primer on quantitative trading I need a primer before reading Flash Boys for several reasons. I was an ‘over-the-counter’ institutional bond guy, rather than a participant in the exchange-traded [&hellip