1. "The stock market is rigged," Michael Lewis tells Fresh Air's Terry Gross. “It's rigged for the benefit for really a handful of insiders. It's rigged to … maximize the take of Wall Street, of banks, the exchanges and the high-frequency traders at the expense of ordinary investors.”
Lewis is the author of several books about the stock market, including Liar’s Poker and The Big Short. His new book Flash Boys is about the form of computerized transactions known as High Frequency Trading, in which the fastest computers with the most high speed connections get the information first, and make the trade before anyone else can. A nanosecond can make all the difference between how much money is made or lost on any transaction.
Brad Katsuyama (above) figured out how the system is rigged and set out to change it. Lewis explains:

"There is this perception that Wall Street insiders understand how Wall Street works — and it’s false. It’s especially false right now. Here you have this young man, this kid [Katsuyama] at the Royal Bank of Canada who’s engaged in this kind of science experiment in the market. He figures out at least one angle the predators are taking and he goes and talks to not just ordinary investors … the biggest investors, the smartest investors in the world and their jaws are on the floor. … Even these people have no idea what’s going on in the market and are being educated by this Canadian who has basically just arrived on the scene and has decided to make understanding [this] his business."

Photo of President and CEO of IEX Group Brad Katsuyama by Philip Montgomery for The Wall Street Journal View in High-Res

    "The stock market is rigged," Michael Lewis tells Fresh Air's Terry Gross. “It's rigged for the benefit for really a handful of insiders. It's rigged to … maximize the take of Wall Street, of banks, the exchanges and the high-frequency traders at the expense of ordinary investors.”

    Lewis is the author of several books about the stock market, including Liar’s Poker and The Big Short. His new book Flash Boys is about the form of computerized transactions known as High Frequency Trading, in which the fastest computers with the most high speed connections get the information first, and make the trade before anyone else can. A nanosecond can make all the difference between how much money is made or lost on any transaction.

    Brad Katsuyama (above) figured out how the system is rigged and set out to change it. Lewis explains:

    "There is this perception that Wall Street insiders understand how Wall Street works — and it’s false. It’s especially false right now. Here you have this young man, this kid [Katsuyama] at the Royal Bank of Canada who’s engaged in this kind of science experiment in the market. He figures out at least one angle the predators are taking and he goes and talks to not just ordinary investors … the biggest investors, the smartest investors in the world and their jaws are on the floor. … Even these people have no idea what’s going on in the market and are being educated by this Canadian who has basically just arrived on the scene and has decided to make understanding [this] his business."

    Photo of President and CEO of IEX Group Brad Katsuyama by Philip Montgomery for The Wall Street Journal

  2. stock market

    money

    wall street

    michael lewis

    flash boys

    interview

    terry gross

  1. The office of the presidency has these god-like powers especially with regards to our foreign affairs," Lewis says. "The president can be so powerful in some ways and in other ways, particularly with regard to domestic affairs, he’s hamstrung, so this weird disjuncture between his powers and his powerlessness is really striking.

    — Michael Lewis Studies ‘Obama’s Way’

  2. Michael Lewis

    Barack Obama

    Obama's Way

    Vanity Fair

    Fresh Air

  1. "What I noticed is that that office takes your personality and exaggerates it — you become a caricature of who you are. And he has a personality trait that costs him politically, and it’s the personality trait of a writer. He really is at bottom a writer, and the trait is — he’s in a moment and not in a moment at the same time. He can be in a room but detach himself at the same time. It’s almost as if he’s writing about it at the same time he’s participating in it. It’s a curious inside-outside thing, and the charge that he’s aloof grows right out of this trait.
— Michael Lewis on Obama, the person

    "What I noticed is that that office takes your personality and exaggerates it — you become a caricature of who you are. And he has a personality trait that costs him politically, and it’s the personality trait of a writer. He really is at bottom a writer, and the trait is — he’s in a moment and not in a moment at the same time. He can be in a room but detach himself at the same time. It’s almost as if he’s writing about it at the same time he’s participating in it. It’s a curious inside-outside thing, and the charge that he’s aloof grows right out of this trait.

    Michael Lewis on Obama, the person

  2. Michael Lewis

    Obama's Way

    Vanity Fair

    Fresh Air

  1. So [Goldman Sachs] lent the government money without saying that’s what they were doing. If you did this in the corporate world, a bunch of people would be put in jail. They helped the Greek government rig its books so that they looked acceptable to the European Union so they’d be admitted to the euro [zone].

    — Michael Lewis on Goldman Sachs doing off-market currency trades with the government of Greece.

  2. michael lewis

    greece

    goldman sachs

  1. You look at the financial crisis in Europe and the fingerprints of American investment bankers are everywhere. The financial collapse encouraged the worst sort of behavior.

    — Michael Lewis on the financial crisis in Europe.

  2. economy

    michael lewis

  1. Once the Bush and Obama administrations decided that you couldn’t let these firms fail and they didn’t want the mess of nationalizing them, there was really only one way forward — and that way was to gift money onto these banks until they’re back on their feet and can function at the center of the economy again. But that, to any normal person who is outside the system, just looks ridiculously unfair. It looks like socialism for capitalists and capitalism for everybody else. So it’s no wonder people are marching in southern Manhattan.

    — On today’s Fresh Air, Michael Lewis talks about Occupy Wall Street, the debt crisis in Greece, the Euro, and why he feels like California is having ‘third world problems’

  2. michael lewis

    economy

    occupywallstreet

    euro

    greece