Will computers cause the next market crash?

Will computers cause the next market crash? Our electorate is run by the economy, the economy run by Wall Street. Investors control America’s wealth, the economy and the elections. The stock market investing used to be about scrutinizing companies, weighing cash flow, products, mergers, interest rates and the dollar. Today’s trading is short term. Computers look through a magnifying glass at millisecond changes buying and selling on what they “expect” will happen before it does. High speed makes the market subject to “spoofing;” buy/sell orders that are never carried out but cause panic-flood more orders, creating buy low/sell high opportunities. High speed creates feedback loops that mimic other strategies and amplify price swings. High speed means the market is less stable, prone to breakdowns and subject to “flash crashes,” like May 6, 2010 where the market lost 6% for no reason. Computer automated makes the stock market cheaper, faster, and more accessible, but controlled by the hands of robots, intuitive reasoning can be suborned by instantly obsoleted programming. It is bad enough to allow wealth to control elections, but automated wealth puts us on track where moving money around could destroy us faster than a nuclear bomb. Richard Dorsey, Hacienda Heights, CA.

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