[bigwill]

I think this characterization of HFT is a bit overblown. The activity he's calling unethical--offering a security at price, getting hit at that price and continuing to raise your price until you stop getting hit--is exactly what market makers have always done. This is basic free market dynamics. You offer at $100, you get hit, you raise your price a little bit, say $100.05, and see if you get hit again. Don't get hit? Ok, drop your price back down a little. The same thing happens in open pit trading, it's just a lot slower.