When fake information makes the stock market go higher, you know you have a serious problem. They trade on such worthless information. Things that are opinion or unconfirmed reports. We will understand exactly why computer algorithms are terrible in the next crisis.
Computer algorithms will create mass havoc in the next financial crisis. There is no doubt. How much of a role they will play in the events leading up to the crisis, remains to be seen. It’s an absolute fact that there have been many times where stocks have moved based on information that was simply incorrect. Since these programs operate at lightning speed, there’s no way to verify the validity of the information. This will be disastrous.
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Markets: Indexes, Bonds, Forex, Key Commodities, ETFs
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