One of most disturbing facts that have occurred during collapse of new York Stock Exchange recorded last week is human non-intervention in a significant proportion of process. When a series of actions began to fall below a certain limit in advance, some algorithms came into play that ordered automatic sale of packages of affected shares. The result is that re was an even greater decline that caused a single day to lose 1,600 points to main market in world.
And no one can say this was a surprise because it's not first time it's happened. In May 2010 — it does nothing less than eight years — what started out as a strong descent — but more or less normal — rushed uncontrollably. The people in charge of institution panicked when y realized that at time market was in hands of computer systems of negotiation. There were actions that in seconds went from worth 74 dollars to 0.0001. Like releasing Skynet from Terminator in bag.
There will be people who think that this is a problem of rich people and that it affects only those who deposited ir money into stocks. Don't y like to play and have to play? Well, sometimes it gets lost. Okay, let's cover sun with finger of demagoguery, but that does not prevent, wher we like it or not, a great collapse in bags is translated, among or things, that re are people who lose ir jobs and ir way of life. And as economy — again, like it or not — is connected globally, such personal and family dramas can happen anywhere in world.
The problem is that se automatic orders — that delegation of human decision-making in a mamatical formula that runs a machine and that increasingly gains more ground — also help considerably to make stock market work faster and better. I mean, to create wealth. Dispensing with system would slow everything down and probably slow down growth. The solution we are told is that tool needs to be improved. The unsettling reality is that dispensing with it is virtually impossible.
One of main problems that artificial intelligence presents — however rudimentary it may be — is that it executes its instructions absolutely inhumanely in literal sense of word and with all its connotations. But economy is a field where for it to work it is almost imperative a human reading — and ideally it was also humanist — of situations. However, we have just found that it is not quite so.
Will we definitely lose control? Let us hope but we do not make mistake of being optimistic because as Charles J. Chaput, Archbishop of Philadelphia, says in foreigners in strange land "optimism takes for granted that, sooner or later, everything will go to better automatically. Hope does not become so many illusions. "
You can follow country opinion on Facebook, Twitter or subscribe here to Newsletter.