High-frequency, momentum-based trading strategies and leveraged ETFs are raising volatility dramatically, and, in turn, the confidence in the marketplace is eroding quickly. More important, this instability is (to paraphrase George Soros) causing a reflexive and negative impact on the real economy.

As such, high-frequency-trading strategies and uber-leveraged ETFs are the new weapons of mass destruction -- perhaps, instead of calling on the SEC, we should be reporting this to the Pentagon, CIA and FBI!- D. Kass