The stock market is rigged:
Michael Lewis gave an interview to “60 Minutes” ahead of the publication of his book, “Flash Boys.”
He alleges that the stock market is “rigged” by a cabal of high frequency traders, stock exchanges, and Wall Street firms.
He alleges that high frequency traders are able to front run orders, which means they are able to buy in front of you and sell them back to you when you want to buy.
The real purpose of the stock market and Wall Street is not to make you rich from investing in stocks. No, the stock market acts as a wealth transfer mechanism, taking money from small investors and funneling it to brokers and investment banks in New York.
As brilliantly laid bare by producer Martin Smith on another PBS program on April 23 of this year, Wall Street has become an institutionalized wealth transfer mechanism, moving the savings of the little guy into the pockets of the very rich.
And that’s why the 1% has gotten richer since 2008.