If You’ve Got A Dozen

When The Last History Of High-frequency Trading Is Written, Hunsader, Like Joe Saluzzi And Sal Arnuk Of Themis Trading, Deserves A Prominent Place In It.

Here Was A Strange But True Fact: The Closer You Were To The Market, The Harder It Was To Perceive Its Folly.

You Can Anchor The Mind Into Answering A Question A Certain Way By Giving Them A Totally Unrelated Piece Of Information Dropped Before.

People Were Paid Lots Of Money To Make Stupid Decisions, People In Big Banks, And When People Are Paid To Be Stupid They'll Be Stupid. The Question Was, Did They Know They Were Being Stupid Or Were They Just Stupid? I Think You Need To Take It On A Case By Case Basis. There Was Some Sinister Activity, But I Think By And By It Was People Being Incentivised To Do The Wrong Thing.

A Credit Default Swap Was Confusing Mainly Because It Wasn't Really A Swap At All. It Was An Insurance Policy, Typically On A Corporate Bond, With Semiannual Premium Payments And A Fixed Term.