The Bata system of management is a testimony to the understanding that capital is knowledge and not money, buildings or technology:Buildings-they are just piles of brick and concrete. Machines-they are a lot of iron and steel. Only people can give life to it all.

Someone out there was using the fact that stock market orders arrived at different times at different exchanges to front-run orders from one market to another.

Order... is information that fits a purpose.

When they sat down at a small table and punched in their orders,

The SEC staffer argued that it was unfair that high-frequency traders couldn’t post phony bids and offers on the exchanges to extract information from actual investors without running the risk of having to stand by them.

The order was made and sent out, without any reflection, and without thinking of the Jews as a sect or race to themselves, but simply as persons who had successfully, I say successfully instead of persistently because I know there were a plenty within my lines who envied them their success, violated an order, which violation innured greatly to help the rebels.

It was neither healthy nor good when public stock exchanges introduced order types and speed advantages that high-frequency traders could use to exploit everyone else. This sort of inefficiency didn't vanish the moment it was spotted and acted upon. It was like a broken slot machine in the casino that pays off every time. It would keep paying off until someone said something about it; but no one who played the slot machine had any interest in pointing out that it was broken.

Tomas Bata and Bata-System of management are not well known today even though their success and heritage value are undisputed and awe-inspiring in the New Economy. T. Bata died in 1932 in a plane crash. By the time of his death he had introduced fundamental changes in management philosophy and techniques. Many of Bata approaches have been ‘discovered’ during the last 20 years by the Western World as part of what has become known as the ‘Quality Revolution’. Quality management was practiced by the Bata enterprises since before the World War I, through 1920s, 1930s and 1940s, well before the ‘gurus of quality’ even started thinking about the subject. Japanese visitors came to Zlin to learn about the Bata system well before the World War II. In addition, Bata executives traveled to Japan in 1937 and predicted the industrial rise of Japan at that time.

The relationship of the big Wall Street banks to the high frequency traders, when you think about it, was a bit like the relationship of the entire society to the big Wall Street banks. When things went well, the HFT guys took most of the gains; when things went badly, the HFT guys vanished and the banks took the losses.

[It appears that circular orders for the conversion of the Hindus were issued to all the different detachments of his troops. The original of one of these orders found in the records of Palglmut fort, after its capture in 1790, ran as follows : — ] “It directed (all military detachments) that every being in the district, without distinction, should he honored with Islam, that the houses of such as fled to avoid that honor should be burned, that they should be traced to their lurking places, and that all means of truth and falsehood, fraud or force, should be employed to effect their universal conversion.”—

It appears that circular orders for the conversion of the Hindus were issued to all the different detachments of his troops. The original of one of these orders found in the records of Palglmut fort, after its capture in 1790, ran as follows : — “It directed (all military detachments) that every being in the district, without distinction, should he honored with Islam, that the houses of such as fled to avoid that honor should be burned, that they should be traced to their lurking places, and that all means of truth and falsehood, fraud or force, should be employed to effect their universal conversion.”—

It is usually not realized that random acts of barter would not, by themselves, produce prices unless a market pattern were in existence that made the bartering intent of the persons effective. In this sense, barter is very much like reciprocity and redistribution. The principle of behavior, in order to become effective, requires the presence of some institutional structure. The market pattern is never traceable to the mere desire of individuals to "truck, barter, and exchange." Its origins come from other directions, as we shall see.

What accounts for TIT FOR TAT's robust success is its combination of being nice, retaliatory, forgiving, and clear. Its niceness prevents it from getting into unnecessary trouble. Its retaliation discourages the other side from persisting whenever defection is tried. Its forgiveness helps restore mutual cooperation. And its clarity makes it intelligible to the other player, thereby eliciting long-term cooperation.

When you worked in a profession whose tools included guns and bombs, death was always on the menu; only a matter of time until the order you placed arrived...