Here’s an interesting headline:
Looks like the robot takeover is proceeding exactly as we predicted. There are just a few little bumps in the road we have to look out for.
The rules have, historically, been mostly about preventing people from ripping each other off in ways that were deemed unsporting (insider trading, outright fraud, etc.). Even this wasn’t always necessary: Plenty of unsporting practices have, historically, been punished not with CFTC sanctions but with everybody refusing to trade with you because you’re a jerk.
But a market dominated by computers looks a bit different. They’re so fast, and they’re all programmed by like the same 12 guys using the same mathematical models, and they have no emotional intelligence. So much more so than with humans, there’s an alarming chance they’ll all think and do the same thing.** If that thing is wrong, then it’s a big problem.
Just to clarify, a “big problem” in this context means something along the lines of, potentially, the complete collapse of our financial system. That sounds really bad, but one fact might help: it will happen so fast we’ll never know what hit us.
So we’ve got that going for us.
The question is — what will the robots do with us after they’ve dismantled the economy? We can only hope they’ll build a new one — maybe a more resilient version.