Twenty years ago, Nathan Most invented the exchange-traded fund (ETF) as a simple mutual fund that trades on exchanges like a stock. Then other creators like Blackrock Inc. (BLK) joined in, creating ETFs for commodities as well as exotic ones that double and triple returns. They are called 2x and 3x shares.

When first introduced, ETFs were shunned, mainly because investors knew little about the way they worked. Slowly, they gained momentum, and now there are some 260 such funds trading $40 billion globally. On some days, more than four out of ten trades on U.S. stock exchanges involve ETFs.

Using a diamond studded wire saw operated by an underwater robot, British Petroleum (BP) tried to saw the pipe that runs from the wellhead up to the drilling rig. That pipe now lays on the ocean floor. The plan was to saw the pipe off and cap the well. However, the saw that was doing the cutting got stuck in the pipe and the attempt had to abandoned. Now BP has to try a second cut. Admiral Thad Allen of the Coast Guard said: "I don't think the issue is whether or not we can make the second cut." It's about how fine we can make it, how smooth we can make it."

The Securities and Exchange Commission (SEC) is conducting a discussion in Washington on dark pools.

What are dark pools and how do they function? Dark pools are private U.S. stock venues, like a hidden stock exchange. Big players use these venues to trade large blocks of stock off the exchange floor. The identity of traders using dark pools is kept secret. This is a big departure from trading on the NYSE floor where trades are made via the open outcry system. The size of trades is made public on the ticker tape. In dark pools none of this information is public.

American International Group, Inc. (AIG) earned $1.45 billion in the first quarter. AIG owes the government $182.3 billion. AIG plans to pay its managers $380 million in bonuses. Do you see anything wrong with this picture?

Up to 3,000 managers will receive an average of $125,000. AIG has maintained that it has to pay these huge bonuses to retain their employees. This is hogwash. You can bet that there are thousands of unemployed persons on Wall Street who can do the job.