High-Frequency Trading are Driving Oil Prices Higher! CapitalAccount

Welcome to Capital Account. An EU parliament committee voted unanimously to back tighter restrictions on banks’ trading activities, including a proposed curb on high frequency trading. We talk to our guest David Greenberg, former NYMEX board member, about where the United States stands on high frequency trading.

Also, oil rebounded from the lowest close in almost two months, supposedly on speculation that China will take stimulus measures. We have gone from $50 a barrel in 2007 to above $90 in just a few years. We ask David Greenberg about what really changed that may have exacerbated this rise in the price of oil in the last 5 years.

Plus, US GDP revisions for the second quarter reduced growth down to 1.3 percent on an annualized basis. Times Square was a good indication of tough times after the 1929 stock crash, and since Lauren and Demetri are in New York today, we will have a chance to hear from them about what they call the “peep show indicator” in a special episode of “Loose Change.”