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Forum Post: The Story of the "Flash Crash"

Posted 10 years ago on Jan. 13, 2014, 12:11 p.m. EST by shoozTroll (17632)
This content is user submitted and not an official statement

"By Alexander Reed Kelly

A dark shroud envelops the globe every time technology moves forward. If the right people aren’t in power—and they almost never are—the untried shadows present a risk-free opportunity for those close to the action to take advantage of nearly everyone else. In the absence of sufficient regulatory will and sophistication in the bureaus tasked to oversee markets, this is what the opaque marriage of computers, Wall Street and high-level math has made possible over the last decade in the form of high frequency trading: the back and forth exchange of huge volumes of complex stocks and bonds in as little as a millionth of a second."

http://www.truthdig.com/report/item/truthdigger_of_the_week_documentary_filmmaker_marije_meerman_20140111

31 Comments

31 Comments


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[-] 3 points by elf3 (4203) 10 years ago

I agree with you Shooz - This is why we need art and philosophy in society - scientists and mathematicians often don't stop to think if they should do something, they only want to see if they can. We've not only lost economic balance; we've also lost a balance between independent vs group think, between free thinkers vs those that follow the path of least resistance, between empathy and greed, and between creative thought vs following a formula. Our technologically driven society has stopped valuing those things which make human beings so wonderful (creative, thoughtful, questioning, innate emotional compasses) who do things simply because they are beautiful and good, not for what they will gain financially from it; Those beings who have strong leanings in those directions are getting starved out - they can't get jobs in their special skill set because - the system doesn't value what they have to give anymore and at the same time is raising the cost so they can't afford to live in it: Teachers. Artists, Writers, Historians/ Philosophers, Psychologists, Nurses, Musicians, Dancers, Actors, Crafters. Furniture Makers, small farmers and business owners- basically anyone who can question the system and isn't compliant or who dares to try to sell something they made on their own not in China. I'm sure corporations only hire those scientists who will do things for the dollar, or who follow their leaders unquestioningly like robots - otherwise I gather we'd have had a few whistle-blowers by now. How many work for Monsanto, create derivative programs, or help ceo's "lose" certain communications they don't want known? The Constitution should be the stamp by which emerging technology is held to - only our dear Congress and Supreme court are pretending it doesn't apply ...we're all getting gas-lighted on a mass scale. Also Nerds - stop trying to prove you are cool now by making shitloads of money - you're only tainting your souls and selling out to the system ... stay nerdy please it's far more appealing than greed!!

[-] 0 points by MattLHolck (16833) from San Diego, CA 10 years ago

the computer can't be blamed

this is just another case of

"we say so"

because the computer did it

because we say so

[-] 0 points by shoozTroll (17632) 10 years ago

You should actually watch them. It's not a case of that at all.

[-] 0 points by MattLHolck (16833) from San Diego, CA 10 years ago

how's that ?

because you say so

[-] -1 points by shoozTroll (17632) 10 years ago

Not really. It would just allow your comment to reference the actual information, as at this point it doesn't.

If you're OK with that?

Then I guess you are.

[-] 0 points by MattLHolck (16833) from San Diego, CA 10 years ago

tell us that money is hidden behind a black box that we don't control seems like a "shut up noob. you don't understand the market" those that control the arbitrary numbers understand

[-] -1 points by shoozTroll (17632) 10 years ago

It's more about the war of quants and how they got there.

Not a word about "shut up you noob". What made you think so?

[-] 0 points by MattLHolck (16833) from San Diego, CA 10 years ago

because we start with a black box

and I have know idea what this about by reading the first paragraph

I have not been made to understand

can you explain it ?

[-] -1 points by shoozTroll (17632) 10 years ago

I just did.

It needs to be watched for the details.

[-] 0 points by MattLHolck (16833) from San Diego, CA 10 years ago

not an acceptable answer

[-] -1 points by shoozTroll (17632) 10 years ago

Nor was the request.

I can't explain almost 2 1/2 hours of video in a forum post.

that's why I posted the links.

You should find it interesting, there's a lot of your fellow physicists involved.

It would be like a class reunion.

[-] 0 points by MattLHolck (16833) from San Diego, CA 10 years ago

I can't explain almost 2 1/2 hours of video in a forum post.

and that is suspect

if it can't explain in accessible manor a doubt its understandable

it's a bit like a filibuster

[-] -1 points by shoozTroll (17632) 10 years ago

Not really.

It's the history of the war of the quants.

Plus the simple fact that I watched it over a month ago, and you haven't even started yet.

From inception, through the SEC investigation.

The guy felt guilty, so he reported it.

[-] 0 points by MattLHolck (16833) from San Diego, CA 10 years ago

time is money

[-] -1 points by shoozTroll (17632) 10 years ago

No.

It isn't.

Time is life.

The money end of that "adage" is this.

Your time = their money.

Now, go stand in line and wait.

[-] 0 points by MattLHolck (16833) from San Diego, CA 10 years ago

whoops no doubt

take the pill

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[-] -1 points by shoozTroll (17632) 10 years ago

It's war to see who can siphon off the most money without ever actually doing anything to earn it.

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[-] -1 points by shoozTroll (17632) 10 years ago

As I've explained before. That's all Wallstreet is.

A kind of mafia.

Gambling and graft are their cornerstones.

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[-] -1 points by shoozTroll (17632) 10 years ago

In flash trading, it's all about who beats who to the punch.

It's a game of speed and inches of optic cables.

All other things equal, the shortest cable wins.

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[-] -1 points by shoozTroll (17632) 10 years ago

It's worth the wait to watch it.

For something shorter and printed.

http://truth-out.org/buzzflash/commentary/jim-hightower-the-mobsters-of-wall-street

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[-] -1 points by shoozTroll (17632) 10 years ago

There's 3 videos @ 50 min each. It's going to take me a while to watch them all.

But alas...........so far.

INSANE, fits it well.

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[-] 0 points by shoozTroll (17632) 10 years ago

Through the first, this isn't about traders. It's about the algorithms used in microsecond trading.

So far, no one knows what program, nor why it happened.

My theory, is someone profited from the dive, and again on the upswing.

The trading house where it originated was in Kansas City.

I'll try and watch the second one tomorrow.

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[-] 1 points by shoozTroll (17632) 10 years ago

It was apparently caused by a war of the "quants", a war of the algorithms that control this type of trading.

One thing they all admit, is that it is designed for pure profit, it adds NOTHING of value to any product or service.

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