Events in Europe are a great example of bankers gone wild and you simply can’t trust them, said Warren Buffett’s right-hand man Charlie Munger. Munger was also extremely critical of high-frequency trading.
“I think the long term investor is not too much affected by things like the flash crash. That said, I think it is very stupid to allow a system to evolve where half of the trading is a bunch of short term people trying to get information one millionth of a nanosecond ahead of somebody else,” Munger said.
“It’s legalized front-running. I think it is basically evil and I don’t think it should have ever been allowed to reach the size that it did,” he said. “Why should all of us pay a little group of people to engage in legalized front-running of our orders?”