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"Calculating The Future"

Joined
7/5/10
Messages
46
Points
18
My favorite economics professor sent me this article:

It mentions much of the AI and sentiment analysis going on to influence trades, IE processing twitter feeds, WSJ articles, etc.

“Their minds are like, ‘We know as economists this is what is happening, or should be happening,” she said. “But the real world says ‘No.’ The computer systems and all these quant people are changing the market much more rapidly than they actually want to.” And not necessarily for the better. When asked whether she thought all these quants made for more stable financial markets, Mirghaemi looked at me and said: “It is very, very risky and it brings a lot of volatility to the markets and it is out of control.”

http://www.ft.com/cms/s/2/0664cd92-6277-11e1-872e-00144feabdc0.html#axzz1oEeYcqi8

My take is that many of these new approaches actually add rationality to the market. What do you guys think?
 
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