It was a late Friday afternoon, after 19-weeks of utter catastrophe in the stock and commodity markets, as the SEC and Justice department's new rule against high frequency trading had gone into full effect. The authorities thought that the stair-step approach to quelling this technique would suffice, but it hadn't, and now with all high frequency trades stopped which had ultimately accounted for nearly 65% of the commodity market, 75% of the carbon trading market, and 58% of the stock market trades, the volume was so far down, nothing was happening - 10 trillion dollars had left the stock market alone since the rule was announced.
It was June 10, 2016 when the final ruling came in from the Supreme Court. The court reasoned that since the corporations doing the high-frequency trading are considered legal citizens, they are allowed to trade as fast as they want or are able, just as any normal citizen would, if they could. Although the vote was very close, it appeared that once again the Supreme Court was playing politics, and doing what they thought was best for the country. After all if they didn't get the trading volume back up, the federal government could go bankrupt, as so many citizens wouldn't have enough retirement after the severe losses. With the budget pull-back in 2013, social services were already becoming a bare-bones affair.
There were also a multitude of farmers that had filed bankruptcy unable to make good on their commodity contracts, and it was causing food shortages, exacerbating commodity markets, and people were feeling the pain at the grocery store, people were getting angry, and there were periodic riots. Many said that the Supreme Court did the wrong thing, other political pundits and economic analysts said they did the only thing they could do to save the country.
One legal constitutional scholar reminded TV audiences that it wasn't the Supreme Court's job to save the country from itself, it was their job to interpret the Constitution, and what they did was bad for the Constitution all to help the political leadership, Chicago, and Wall Street from losing control. What will happen next everyone wondered and pondered? It was thought that the volume would come back up, and markets would recover, but some question this.
Their view is that if high frequency traders had the inside track, and if the game was rigged, fewer investors would put their money back into the stock market, and the high-frequency traders would continue to do mass market manipulation causing huge swings of volatility, making it almost impossible for a viable and sustainable distribution of food and materials to markets, or anyone using the stock market for investment, as it would be more like an insane never-ending-high-velocity online gaming affair. Tomorrow is June 11, 2016, the whole world has changed, and we won't know how much until the markets open on Monday.
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