Tags / 3 quotes from 2 sources
#finance
Beyond Zero and One (Andrew Smart)
Algorithms herd more than human investors
Today, the stock market is almost completely automated. Complex algorithms execute trades in milliseconds, making decisions involving billions of dollars without any human intervention. Each innovation to these algorithms makes them faster, so that one investment bank can…
Markets disconnected from the real economy
Furthermore, new algorithms that exploit the high volatility associated with distress and crashes are being aggressively developed. The presence of these “agents” in the market can cause self-perpetuating, reflexive hyper-volatility that can spiral out of control. Dr. Sornette…
Of money and morals
Banks hiring moral philosophers
So what would the Scholastics make of modern finance? Would they admire how efficiently a family’s savings can find productive uses? Or would they decry how developing countries pay more to borrow than rich ones? Would they marvel at our banks’ international reach? Or would…