".. One important role that financial markets play is in making asset prices reflective of real-world conditions. High-frequency trading allows markets to be highly sensitive to new information and to intermediate between buyers and sellers who may not be in the market at the same time. Stopping high-frequency trading would have the effect of making price shifts more sudden, unpredictable and larger."
No, prices no longer reflect a healthy demand/supply ratio. That was true in the 18th century when this simple law of economics was first formulated: there was a "simple" production-based economy with a relatively limited basket of goods. Today's asset prices are disconnected from the real economy and based on "expectations".
The economy is based on a complex combination of goods and services where only a tiny set of people control enough information to play successfully on the trading floor. It's a club.
Bankers control money creation (money supply) and most of the trading.
It's not surprising that the City is adamant about repelling any attempt to regulate.
I am not surprised that the author cites Bonaparte, an overused scarecrow for the British banksters propaganda.
Vive la France for having the guts (after Sweden ten years ago) to at least try and curb speculators who are hi-jacking the monetary system.
However only an international policy decision can make a difference in the long run.
