College Quote by Charlie Munger
“Fancy computers are engaging in legalized front-running. The profits are clearly coming from the rest of us - our college endowments and our pensions. Why is this legal? What the hell is the government thinking? It's like letting rats into a restaurant.”
About This Quote
Source Speech: Interview at Stanford University, 2022
The speaker argues that high-frequency trading and front-running are legal yet exploitative, likening them to rats in a restaurant.
In simple terms: Legal trading practices can be exploitative and unfair.
Key Takeaway
Demand stricter regulation of predatory market practices.
Themes
ethics
finance
regulation
Mood
concerned
analytical
skeptical
Type
economic
political
When to use this quote
- stock markets
- investment funds
- retirement accounts
- policy discussions
Key Concepts
market manipulation
legal loopholes
economic inequality
Questions to Reflect On
- How can markets be both efficient and fair?
- What reforms could curb predatory trading?
A Different Perspective
The analogy may oversimplify complex market dynamics and ignore benefits of liquidity provision.
![“They [Mc Donalds] take people and give them a first job, which enables them to get a second job. They do a very good job of educating troubled young people to be good citizens and they're probably more successful than charter schools.” quote by Charlie Munger](https://sms4smile.com/quotes/img-quotes/a55/charlie-munger-458_be-good_they-mc-donalds-take-people-and-give-the_41809.jpg)
![“It is way less certain to be a wonderful business in the future. The threat is alternative mediums of information. Every newspaper is scrambling to parlay their existing advantage into dominance on the Internet. But it is way less sure [that this will occur] than the certainty 20 years ago that…” quote by Charlie Munger](https://sms4smile.com/quotes/img-quotes/8d0/charlie-munger-458_advantage_it-is-way-less-certain-to-be-a-wonderful_59627.jpg)
