I think he is right but the biggest issue is that Wall Street has become solely a place for 'transfer of wealth'. They do not care about value or know what it is, i.e. people like Warren Buffet stepping in recognizing value and investing when the price does not match the value.
But I think the biggest problem is the market is so huge and the more money you feed it the more irrational it gets, doesn't matter wether algorithms or humans are doing the trading.
Irrational trading creates bubbles and they gamble value away until the bubble burst. And even after the bubble burst its just a reset to the market.
I do not know where it is headed but I think one day countries will realize that they were better off with out mr.market because when the value companies build are traded away and in turn the middle class/country suffers, wall street walks away with the money, i.e. the house always wins in the end.
But I think the biggest problem is the market is so huge and the more money you feed it the more irrational it gets, doesn't matter wether algorithms or humans are doing the trading.
Irrational trading creates bubbles and they gamble value away until the bubble burst. And even after the bubble burst its just a reset to the market.
I do not know where it is headed but I think one day countries will realize that they were better off with out mr.market because when the value companies build are traded away and in turn the middle class/country suffers, wall street walks away with the money, i.e. the house always wins in the end.