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03:14 AM

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Subject I know what is going on with the dead bankers.

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[quote:Anonymous Coward 57487769:MV8yNTM5OTQxXzQ0MDMxMTcwX0Y2QTM2MUM2]
[quote:Anonymous Coward 53471824:MV8yNTM5OTQxXzQ0MDMxMDk3X0Y3ODZCM0RD]
Interesting, but I'm sure the algos could be tweaked to react to the approaching inflection point. Certainly that would result in serious economic slowdown, but it would still be better than a full blow-out. So why aren't the algos self-limiting? Is it because profit becomes first even if it means that we're driving off the cliff?
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I will be honest with you: I don't know the technical details of this. I have a only hazy idea of the basic problem: It has something to do with the way the algos are entangled with each other. They are too intimitely entangled now to make such "tweaking" as you mentioned possible. Some of it has to do with the derivatives market: They are all programmed to react on a microsecond-order level with each other, and to react to each other's reactions, and to react to the reactions to the reactions, and so on. It has passed beyond a level of complexity that the human mind can even comprehend, much less unravel.

Another aspect of the problem is all the most advanced computers and systems now use souped up "neural network" tech. Basically, the connectivity is modeled on a human brain, and the systems "learn" automaticaly and self-modify the way a growing human brain does. We can't "re-program" their behavior because they aren't acting on simple programs; the are self-iterative and self-modifying, and they have spun off to a level of complexity and speed that is, again, beyond the realm of their creators to handle.
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Original Message It's not really safe for me to comment in depth but I will reveal the following:

The dead bankers are being killed because one by one they are becoming aware of the fact that not only is every market being manipulated -- it is being manipulated by computer algos that are actually more sophisticated than the brains of the humans who created them, and there is no way to "turn them off" without causing market catastrophe.

It's not sci-fi like "the computers have become self-aware" or anything that baroque; actually, it's pretty simple. The algo trading platforms have become so integral to the process that they simply can't be removed. An analogy would be trying to run modern society without cars and electricity. Cars can move faster and carry more than humans. If a transport company gave up cars, it would be overrun by its competitors. In the same way, if all the major players agreed together to give up the algos, the system might be saved, but since each firm and nation is engaged in cutthroat competition, they will never be able to reach this kind of agreement -- the benefits from cheating or holding out are too great, and the dangers of being the first to quit are too extreme.

All of the top bank and important market leaders know about this. But there is more: The way the algos interact, they are 100% guaranteed to crash the system even if they keep going, due to the iterative effects of their mutual interactions. This inflection point will probably be reached this summer or possibly in the autumn. The national and market leaders are trying desperately to paper over the issue (including with distractions such as the Ukraine imbroglio, which is a strategy to set up the BRICs to take the fall when the whole thing crashes, and Russia's corresponding pushback). When these mid-level types discover the nature of the problem, they have to be killed because if the news broke in a major way there would be social-meltdown-level panic.

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