Computer technology Quote by Michael Lewis
““The initial promise of computer technology was to remove the intermediary from the financial market, or at least reduce the amount he could scalp from that market. The reality turned out to be a windfall for financial intermediaries—of somewhere between $10 billion and $22 billion a year, depending on whose estimates you wanted to believe.””
About This Quote
Source Book: Flash Boys by Michael Lewis, 2014
Technology was expected to cut middlemen’s profits, but instead it boosted their earnings dramatically.
In simple terms: Tech didn’t lower fees; it increased them.
Key Takeaway
Beware unintended consequences of tech.
Themes
finance
technology
intermediaries
regulation
unintended consequences
Mood
cautious
critical
analytical
Type
observational
warning
insightful
When to use this quote
- banking
- trading platforms
- policy making
- investment strategies
Key Concepts
disintermediation
market dynamics
profit capture
Questions to Reflect On
- How can we design tech that truly reduces intermediaries?
- What safeguards prevent profit windfalls for middlemen?
A Different Perspective
Assumes all tech reduces costs; ignores power of existing players.
![“Crucial decisions are made, today as thousands of years ago, in terms of the intuitive guesses and preferences of a few men in positions of authority...[it is] quite likely that the fate of entire societies may be sealed by a series of avoidable mistakes committed by their leaders.” quote by Michael Lewis](https://sms4smile.com/quotes/img-quotes/a59/michael-lewis-705_decision-making_crucial-decisions-are-made-today-as-thou_16888.jpg)
