Been much like our native american and set ancestors usiny part of tragedy of. [laughter] with nonstop expert news reenactments, graphic simulation, with just a souscian of pop culture relevance. Theres a theory out there with a socalled zombie plane theory. Jon because zombies are hot, yo or maybe the plane was cooking meth in a new mexico trailer. [laughter] but the real question is how did the plane meet your mother . [laughter] the point is while other News Networks have been somewhat willing to move on to other news cnn has remained on the rampart occasionally pointing at bleep and wondering what it is. Could they be close to finally find a scrap, a scrap of debris. This looks like the debris field of an airplane crash. It may not be but it has the look of it. Perhaps it isnt the debris we thought it was. 300 objects. Pieces of debris whether they are from the plane or not we dont know. The association filled with a lot of trash. Its hard to tell one thing from another. Possible debris spotted. The search moves 700 miles northeast. Could that be a piece of the missing plane . Objecting floating in the water. No word yet on what they are. Anything retrieved or looked at in one of these ships has turned out to be not connected to 370. Another day. No confirmed plane debris. [laughter] basically cnn has become this guy. [ laughter ] yeah, i got something. I got breaking news. I got breaking news. Hold on i think i found blackbeards treasure tsms just a pop top. Sorry. After three weeks of nonstop coverage, what are we learned . Were getting a lesson in the trash, all of the trash and all of the objects floating in the indian ocean. Who knew the ocean was such a big mess . [laughter] jon yeah, who knew the place where we dump a tremendous amount of our trash [laughter] is filled with a tremendous amount of our trash . [laughter] what do you think happens when you flush the toilet . [laughter] where does it go . Poop heaven . So the oceans are somewhat polluted. Give us another scoop weigh in on how what we know about what happens with garbage and how it settles. Traditional forms of Marine Debris like i dent plastics comoaft common in the ocean a certain percentage do float. Heavier materials denser than sea water will sink. [ laughter ] jon lets recap cnns last week of missing malaysian airliner coverage. Theres a lot of nonmalaysian airliner garbage in the ocean. The heavier of which sinks. [ laughter ] the lighter of which floats [laughter] let us go now to wolf blitzer in the new duh room. [ laughter ] you know, we talked a lot about [cheers and applause] bleep we talk about how hard it is to spot small debris fields floating on top of giant oceans. Is there any way you could demonstrate finding things that sunk. Fly down and talk about the difference in circumstances. By the time you get to the bottom of the indian ocean, anywhere out here theres so deep theres no light whatsoever, its flat out dark down there in those environments you cannot look the way do you from a ship or a plane. [ laughter ] jon and that, ladies and gentlemen s what its like under the sea. [ laughter ] but lets say you wanted to be up where the people are, up where they walk, up where they run on what do you call them . Legs. Up where they stay part of their world [laughter] for more on that we go out to ursula at the bottom of ocean. Thank you for joining us. Cnn has spent a great deal of time and money scouring our world for any sign of this plane. Its a noble goal if they had done it in a reasonable nondid aliens maybe take it fashion. The with one place they havent looked for the plane as far as i can see is up their own bleep . One of most dedicated members of cnns team is martian savage. He has spent almost a month sitting in Flight Simulator in canada. It hasnt been the easiest assignment. Jeannie most went for the story. Jon there it is. With a lack of new developments cnn is about to do a story coveraging their coverage of malaysian plane story. Someone started freemartin savage. It was transformed to the shape of an airplane. Someone tweeted blink three times if you are held against your l. A public fascination with the played shirts mitchell seemed to be wearing. Mitchs plaid shirt started its own twitter account. Jon cnn presents the search of the twitter feed for the real guy fake searching for the real plane. Cnn needs a real disaster to save it from this manmade one. Dozens of aftershocks hit Southern California after a 5. 1 magnitude earthquake. Jon there you go. Its a real thing that is happening. Were getting a bit of information for clarification. We understand that the center of the quake was in westwood, california, 4. 7 on the Richter Scale jnch beautiful, short, factual not filled with baseless speculation. Doesnt that feel right . A bigger earthquake, is it on the way . [laughter] jon go on. Could this be a season of big earthquakes . Plenty of concern that the big one could be next. Is this a sign of what so many people feared. An 86 of a magnitude 7 p 7. 0 or greater in the next 30 years. The damage and loss of life in the heart of los angeles could be catastrophic. If the big one happens its going to pop, literally pop los angeles up like a cork. Jon i mean talk about a bunch of unidentifiedable bleep floating in the ocean, am i right. Thats all from the arrrgh room. Back to you in the duh room. Cnn no longer wants to be pigeon holed in the nonfiction section. Cnn is not the future of news. Cnn is not the future of news. Cnn is news of the fut rich, chewy caramel rolled up in smooth milk chocolate. All aboard. Rolo. Get your smooth on. Beers have come and beers have gone, but one has stayed the course. Sam adams boston lager. Independently crafted from the finest everything since 1984. Dont change for us, we wont change for you. Way off. A little more to the left. Fire all four. Bullseye. Four flavors. Four shapes. Cheetos mixups. Four flavors. Four shapes. Yo,move fast fruit flavor,fe, watermelon, blue razz green apple. Your taste buds dancing. Its the jolly rancher, we make it happen. Untamed fruit flavor. Jolly rancher. [cheers and applause] jon welcome back my guest tonight a best selling author whose new book is called flash boys a wall street revolt. Please welcome back to the Program Michael lewis. Sir. [cheers and applause] all right. Welcome. First off, let me just say this you write pretty. This book is so good. It first of all well backtrack. This is about this thing called hft, High Frequency trading. What is that . Very fast frequency trading. Jon 20 get an advantage. Thats right. 13 public Stock Exchanges settle right to advance information to High Frequency traders and they do this by selling them the right toll locate their computers. They trade the High FrequencyTrading Computers right next to the Stock Exchange computer. So that jon so its a question of milliseconds . Yes. The difference between the information that a High Frequency trader sees and what most investors see is a crumb of milliseconds. Its enough for a computer. Its a lot of time for a computer. Theres enough time for the computer to react to what do you. Jon so the computer finds out you place an order for a stock. Yes. Jon the computer jumps in and says you are buying that stock. Let me jump in, buy that stock, and sell it right back to you. That will do. Jon that is what they do . That he will do. Jon they insert themselves as a middle man in a transaction they have no business beinging in. In many ways, thats exactly right. They are trading as if they know the prices before you do. If you come in to buy, they may know that they can buy it cheaper because the price has moved but you dont know that so they buy it cheaper and sell it to you. Its totally unnecessary wall street intermediations. They are puttinging themselves in the middle of the market where they are not needed. Jon theres something called front running that is illegal. If do you it with just information. If you find out information about something and it allows you an advantage to buy it before someone else does that is called front running and its illegal, yes . Because its a computer its okay. Jon oh, but front runninging as a person is illegal. But as a computer eh . I think its more generally a problem. People do things with computers they would never do as people. Jon are are you looking at me . So this book here is what is great. This book isnt just about the world High Frequency trading. What i didnt expect from this book is a kind of group of heros to emerge. Thats really what this is about. This group of individuals that got together to do something about it. Its its such a strange story because it really is its about a group of people who are actually on wall street who figure out, kind of around 2008 that the stock market is something funny is happening. Its not just the financial crisis. They look at their is screens and the stock market says its you can buy 50,000 shares of microsoft at 20 a share. They go to buy it and it goes away and the price goes up. Its as if the market knows what they are going to do before they do it. One character. Its a a guy named brad who runs the stock market at the bank of canada. Because he is canadian he has a sense of decency. [laughter] and he is not like a radical. Jon he is a wall street guy. He is not even really that much of a wall street guy. He is kind of a canadian guy. [laughter] its odd that he is in this situation because he is conformist even by canadian standards. All he wants to do is doing good work aves had wall street firm. But all of a sudden the market looks rigs and he starts to ask how is it rigd. The story is the story of him turning over rocks and finding something nefarious under every rock until he assembled a picture of stock market. Instead of taking advantage of it he tells investors about it. Which is also a canadian thing to do. Theres a canadian comengs to the story that runs through it, right. Jo want to say the name Dudley Doright but its hard not to see the compare sons compare sons. [ laughter ] the disadvantage is the hero is dmaidan because everybody goes canadian. Jon he assembles like a rag tag team. Oceans 11 type guys. Yes. Jon let me pitch the movie for you. Its been done. Jon they get together and they start their own Stock Exchange that runs things right. They go to investors. People running the savings of this country and say look this is basic basically what is happening. The investors you would think they would know what is going on in the stock market and they kind of do. They kind of know something is wrong. They go to the Hedge Fund Manager who is always buying companies and selling companies. He thought. He thought they had an Insider Trading leak. The market was so able to anticipate he thought someone was leaking information about when he was doing. Jon which would be illegal. It would be illegal. Jon but if a computer does it. Its okay. Especially if its a mac. [laughter] but so so this he goes he educates people. They say to him create a fair place for us to trade. So in a way he was answering a call. Jon and they do it and people go after them in incredibly vicious ways, trying to ruin them and break them. And they create this iex and its working. Its still going on though. Yes. The problem is do we have time here. Jon here is what well do. I want to talk about the financial newsnetworks and their responsibility in this and why they akd kate it and why they are attacking you like crazy for writing this story. When we come back well talk about. That well be back with boring yeah if you want to see old faithful dont be such a couch potato yeah just go check out the thing for yourself highlander we aint got no room for boring ferdy gerdy ferdy ger boom [ cluck, cluck ] no, we aint got no room for boring for boring, we aint got no room ahh [ male announcer ] the allnew highlander. Toyota. [ animal ] lets go places. The juicy dragon . Starburst taste so juicy . [ male announcer ] the allnew highlander. They show funny videos to a giggly dragon, he laughs so hard that he cries super juicy tears, and they put them in the starburst. Sfx dragon laughing you didnt know that . Everybody knows that. A juicy dragon . Starburst, unexplainably juicy. Pick up some starburst jelly beans this easter. [ peaches herb singing reunited] reunited and it feels so good reunited cause we understood thats one way you calcould play it. T . Nothing wrong with 8 hours sleep. Another option . You get back in there, fight the coming of tomorrow. Make it the kind of night most men can only dream of. Fortune comes to those who seek it. New miller fortune. Undistilled with a smooth finish for spirited nights. Funny, there was no mention of hail in the weather report. Go smell the roses [cheers and applause] jon welcome back. Were here with michael lewis. Were talking about this group of exbanger and Hedge Fund Guy and wall street guys that formed their own Stock Exchange because of the High Frequency traders were rigging the market. What is the banks role in this High Frequency scam . You back away and theres an ecosystem that built itself around High Frequency traders skimming profits. They pay the exchanges for special access, special information that ordinary investors dont have. They pay the brokers, the people who handle stock market orders for your order. When you place an order you pay a commission to trade the stock. But the information about what you want to do gets sold to a High Frequency trader and the right to trade against you gets sold. That in itself. Why would someone pay to execute your stock market order . You would think someone would ask that question. Jon they do because this trader gets a volume. They make money on volume. The High Frequency trader gets a chance to trade against you at the old price. Jon and you dont know hes there. And youve not invited him in. You have not invited him in. Theres different kind ofs predatory activities that the High Frequency traders are engaged in. None of them are good for us. They are a tax on investors. Jon so we get to the second pard of this book. You write this and immediately cnn bc, fox news they jump up to defend this sayinging it helps us. Its adding liquidity. Theres nothing wrong to it. Its actually great. Even though to my mind it completely deteriorates the faith in the system. Its not american and not even capitalism. Its cheating. All he went to do was figure out how the stock market worked. It was a complicated question. It became that way so you wouldnt understand. Hes trying to rectify that problem. The mere fact was a radical act. The reason people are so upset is if you back away from it so High Frequency traders are essentially making money for the wall street system. They are paying exchanges, banks. So anybody whose livelihood is dependent on wall street profits including the s. E. C. Is sort of invested in this. I think a lot of this it sounds like a conspiracy but when you look at how it lays out. Theres a conspiracy existing to keep buyers of stock away from sellers of stock to people can insert themselves artificially in between. It was largely accidental but then the money started getting made. The conspiracy is preventing the change. Jon they function on volume and volatility. Iex comes in and they establish a parameter for trading speed. They give you a sext you cannot jump this amount of time. They become faster than all the people on the exchange. They slow its down the traders. Jon correct. You cant buy less than a share. You cant buy 100th of a share. If theres a standard for share buying. Why isnt there a standard for frequency of trading that is just the standard so everybody is on the same field . They would be in a sane world, right . Thats what would you do. You would say that nobody is going to get the information of prices faster, be able to trade faster. Jon you would set a high speed. You wouldnt make it like a half hour. You make it fast. They make it really fast. Its imperceptible. It all seems ins stan instantan. We dont live in a sane world. We live in a different world. What is cool about this and what makes it so neat they created the place where its fair. Its the one Stock Exchange not run by wall street people. Its for investors they figured it out. Jon theres no need for the middle men. They are unnecessary to the system they dont provide the liquidity. Its supplied the investors. This is true. Now we have a choice. For the first time. Theres a choice. Why isnt my order going to this exchange where i wont get scalped . Are you allowed to get that information . Tell me who my order went to. They are being told no but jest. I set up a web site where you can learn your rights as an investor i am an investor. Org. Jon im going to go on that site. Is there also porn . I like something extra on a site. Can i win an xbox. I want to ask the financial News Networks complicity in this is driving me insane. Flash boys is on the bookshelves now. Its so well written, beautiful narrative. Michael lewis. Michael lewis. You pizza hut already makes great pizzas. But now theyre delivering awardwinning wingstreet wings. Me to put them to the test, with some real wing experts pub trivia teams. Delicious. These are great fantastic. Really good. You gonna give my man one or are ya gonna box him out here . Get 8 boneout wings r 5 bucks. Wingstreet from pizza hut its like jasper here. Strong. Sturdy. But not too sweet. [ male announcer ] built from apples. Built to refresh. Smith forge hard cider. Made strong. My name is roosevelt. I always thought that cigarette smoking just messed up your lungs. I never thought that, at only 45, it would give me a heart attack. I never thought that it would stop me from playing basketball with my kids. Never thought that it would give me a scar like this. And i never thought that it would change my life forever. My tip is do your heart a favor and quit now. You can quit. For free help, call 1800quitnow. [ male announcer ] good days start here when you wake up with mccafe. And now a small cup of our freshly brewed coffee is free through april 13th. Its another reason to love mccafe. Jon thats our show. Your moment of zen. How dangerous earthquakes can be. Part of that is this earthquake simulator which attempts to replicate a you die, okay . Youre dead. Theres nothing. Just your body getting eaten by worms and slugs. Ugh. Yeah, i dont know, though. I think that heaven is real, and im gonna go to it, cause, like, right before i die, im gonna just join all the religions, right . So if, like, god is actually, like, buddha or, like, jesus, or, like, tom cruise, like, ill get up there, and ill be like, yo, man, check the list. Im on that. Right. You know what i mean . I dont know, man. Im just tossed up because, like, part of me is like, dude, i wanna party with satan, cause he, like, seems pretty cool, but then again, im really trying to kick it with the big n. W. O. Out in the sky. You know what i mean . Well, he has, like, horns on his head, and the other dude is just like morgan freeman. Right, right. Whos god. And although hes pretty cool and he has wears earrings and, like, bangs, like, you know, 19yearold models yeah. Actually, lets kick it with morgan freeman. Are we sure hes not satan . Yeah, i dont care how long youve been a veterinarian. [overlapping chatter] oh, damn. Oh, shoot. She was supposed to have her nails trimmed and her anal glands expressed, and guess what, pal they werent. Boss, boss, boss, boss. Whoa. What the heck is this