A software problem shaved $440 million off Knight Capital Group this week. It was reminiscent of the 2010 “flash crash” meltdown. Then there was the Facebook debut, fouled up on Nasdaq. As Reuters commented:
In the old days, it was simpler: human traders known as “specialists” worked on the floors of stock exchanges, such as the New York Stock Exchange, to match buyers with sellers and complete trades themselves if matches couldn’t be made.
But over the past decade, those specialists have been replaced by automated trading systems, and much trading volume has moved away from exchanges and into other venues, such as “dark pools” – trading systems that let investors anonymously buy or sell larger blocks of stock without tipping their hand to a wider market.
What do you think?
Read on for the best links of the week and the haiku:
This Week’s Links:
- Today’s jobs report in pictures || CBPP
- Who has the rosy scenario about GDP growth? || Econospeak
- It’s not just the culture, stupid. Why Israel’s economy is successful || The Atlantic
- The incredible shrinking U.S. workforce || The Behavioral Economy
- Romney’s “recovery plan” could bring on another recession || The New Yorker
- Unemployment at record high in the eurozone || NY Times
- Government cutbacks separate this recovery from others || Wall Street Journal
- Trade offs between inequality, productivity and employment || Interfluidity
- The terrible economy and the anti-election of 2012 || Robert Reich
- Why Washington accepts mass unemployment || NY Mag
Today’s Econ Haiku:
Blue Angels shriek by
The jobless sit in silence
Blue and on the ground