Friday, May 07, 2010

Nobody Knows

why the stock market took that sudden dive yesterday. Kevin Drum now supports my suspicion that it was an artifact of the system - the computerized trading, the fast rates at which it is done. Felix Salmon has more, and links to still more. I'm not going to dig into it - something in my brain just gives up at the levels of abstraction above futures contracts - but it's there if you want to.

I'll agree with the two of them that what the financial geniuses are doing with computers is probably beyond their ken as well and that something needs to be done to stop the crazy. The transaction tax sounds like a reasonable idea to slow things down.

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