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Motley Fool Money

Motley Fool Money: 4.18.2014

Motley Fool Money

The Motley Fool

Business, Investing

4.43K Ratings

🗓️ 17 April 2014

⏱️ 39 minutes

🧾️ Download transcript

Summary

Is high-frequency trading a threat to individual investors? On this week’s show, best-selling author Michael Lewis talks about his new book, Flash Boys: A Wall Street Revolt.

Transcript

Click on a timestamp to play from that location

0:00.0

Everybody needs money. That's why they call it money.

0:08.0

From full global headquarters, this is Motley Fool Money.

0:19.0

It's the Motley Fool Money Radio Show. I'm Chris Hill and this is our spring break special.

0:23.0

Motley Fool's CEO Tom Gardner recently sat down with bestselling author Michael Lewis

0:28.0

to talk about his new book, Flash Boys, a Wall Street Revolt.

0:33.0

This week you'll hear the entire interview. And Flash Boys Lewis explains the secret world of high frequency trading

0:39.0

and he begins by talking about a big problem with the stock market.

0:43.0

Can I just start? Are you ready?

0:45.0

Yeah.

0:46.0

Rather than you ask me a question. This is great.

0:48.0

Because before we went on camera, you just said, and a fool is a good thing.

0:51.0

And you just triggered a thought that this experience of writing this book has sort of hammered home.

0:59.0

And it's that a big part of the problem in the stock market right now has been that investors did not want to acknowledge their ignorance

1:07.0

about how the stock market worked.

1:09.0

So they're willing to believe the noise that came out of broker's mouths about how electronic trading worked.

1:15.0

And everybody is still to this moment.

1:18.0

And not just investors like small investors, but like CEOs of large mutual fund companies.

1:22.0

The heads of mutual funds, the heads of pension funds, the big hedge fund managers,

1:26.0

that the thing that they get quickly offended by coming out of my mouth say is the idea that the hero of my book

1:35.0

explains to them how the stock market now works even though that's what happened.

1:39.0

That two or three years ago they had no idea how they were being front run by high frequency traders.

1:44.0

This guy comes and explains they respond by saying, oh my god, I can't believe this is happening.

...

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