Michael Lewis quote: “Someone out there was using the fact that stock market orders arrived at different times at different exchanges to fron…”

“Is Man so different from any of these Apes that he must form an order by himself? Or does he differ less from them than they differ from one another, and hence must take his place in the same order with them?”

Thomas Henry Huxley (1825–1895) English biologist and comparative anatomist

Source: 1860s, Evidence as to Man's Place in Nature (1863), Ch.2, p. 86

“The stock market is not the economy, and the economy is not the stock market.”

Kai Ryssdal (1963) Radio host, United States Navy officer

repeatedly on his radio program " Marketplace APM https://www.marketplace.org/2019/09/30/the-stock-market-is-not-the-economy/" (September 2019)

“The orders resting on BATS were typically just the 100-share minimum required for an order to be at the front of any price queue, as their only purpose was to tease information out of investors. The HFT firms posted these tiny orders on BATS—orders to buy or sell 100 shares of basically every stock traded in the U. S. market—not because they actually wanted to buy and sell the stocks but because they wanted to find out what investors wanted to buy and sell before they did it. BATS, unsurprisingly, had been created by high-frequency traders.”

Michael Lewis book Flash Boys

Source: Flash Boys (2014), p. 73

“Differences are not intended to separate, to alienate. We are different precisely in order to realize our need of one another.”

Desmond Tutu (1931) South African churchman, politician, archbishop, Nobel Prize winner

“No one can buy his share of "clean air" in the market; one has to use communal mechanisms in order to deal with pollution.”

Daniel Bell book The Cultural Contradictions of Capitalism

Source: The Cultural Contradictions of Capitalism (1976), Chapter 5, Unstable America, p. 196

“How could it be that the same technique applies to the Internet, the weather and the stock market? Why, without particularly trying, am I touching so many different aspects of many different things?”

Benoît Mandelbrot (1924–2010) Polish-born, French and American mathematician

A Theory of Roughness (2004)
Context: How could it be that the same technique applies to the Internet, the weather and the stock market? Why, without particularly trying, am I touching so many different aspects of many different things?
A recent, important turn in my life occurred when I realized that something that I have long been stating in footnotes should be put on the marquee. I have engaged myself, without realizing it, in undertaking a theory of roughness. Think of color, pitch, heaviness, and hotness. Each is the topic of a branch of physics. Chemistry is filled with acids, sugars, and alcohols; all are concepts derived from sensory perceptions. Roughness is just as important as all those other raw sensations, but was not studied for its own sake. … I was not particularly precocious, but I'm particularly long-lived and continue to evolve even today. Above a multitude of specialized considerations, I see the bulk of my work as having been directed towards a single overarching goal: to develop a rigorous analysis for roughness. At long last, this theme has given powerful cohesion to my life … my fate has been that what I undertook was fully understood only after the fact, very late in my life.

“Plainly, the most powerful exception to the notion of a voluntary excahnge in a market economy is the labor market. The existence of a market for labor is one of the distinguishing features of a market economy: workers compete to sell their labor at the most favorable price—meaning, in practice, the highest possible wage. At the same time, however, it is clear that the market for labor is qualitatively different from the market for goods, because workers need to sell their labor to survive.”

Mimi Abramovitz (1941) non-fiction writer

Joel Blau and Mimi Abramovitz, The Dynamics of Social Welfare Policy (Oxford University Press: 2010) p. 68

“Markets are institutions that exist to facilitate exchange, that is, they exist in order to reduce the cost of carrying out exchange transactions. In an economic theory which assumes that transaction costs are nonexistent. markets have no function to perform, and it seems perfectly reasonable to develop the theory of exchange by an elaborate analysis of individuals exchanging nuts for apples on the edge of the forest or some similar fanciful example. This analysis certainly shows why there is a gain from trade, but it fails to deal with the factors which determine how much trade there is or what goods are traded.”

Ronald H. Coase (1910–2013) British economist and author

1960s-1980s, "The Firm, the Market, and the Law" (1988)

“The blessing that the market does not ask about birth is paid for in the exchange society by the fact that the possibilities conferred by birth are molded to fit the production of goods that can be bought on the market.”

Max Horkheimer (1895–1973) German philosopher and sociologist

E. Jephcott, trans., p. 9.
Dialektik der Aufklärung [Dialectic of Enlightenment] (1944)

“The blessing that the market does not ask about birth is paid for in the exchange society by the fact that the possibilities conferred by birth are molded to fit the production of goods that can be bought on the market.”

Theodor W. Adorno (1903–1969) German sociologist, philosopher and musicologist known for his critical theory of society

E. Jephcott, trans., p. 9
Dialektik der Aufklärung [Dialectic of Enlightenment] (1944)

“Someone out there was using the fact that stock market orders arrived at different times at different exchanges to front-run orders from one market to another.”

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