Good Bots, Bad Bots

Over the next few days I’ll be introducing you to some software that makes decisions about money and trading.

Unlike Cliff’s benign bots that use our group cyber consciousness (the web) to project how the human family will be faring in the future, some bots are designed to emulate, or even exploit, human investment choices.  They aren’t all good bots.

Some of those bad bots spun out of control last Thursday.  It put real fear in most professional investors who faced the chasm that opened up in the stock market. For a few minutes, it looked like there might not be a bottom to it.

That ten-minute panic convinced some citizens of our fair country that the markets are a rigged game, rigged to take their hard-earned savings.

The more extreme version of the story is how the bots “milk” us every day or sheer us every so often to take our wool.

We sheep had better hope that the price of wool stays high enough that the farmer doesn’t decide to sell us to the butcher.

In the mean time, I’m hitting the road at 5 AM each morning and coming back after dark, seeing and participating in the purest market I’ve seen in a long, long time.

Brimfield, Massachusetts is a tiny town that gives itself over three times a year to thousands of antique and collectible dealers, and a hundred thousand (some estimate a quarter of a million) potential buyers.

Think Flea Market on steroids for four days at a time.

Saw the perfect bird’s eye maple dresser today.  I don’t need any more furniture, but I may visit the dresser again tomorrow.

hh

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5 Responses to Good Bots, Bad Bots

  1. Kevin says:

    Always enjoyed Brimfield this time of year. We would always stop in the Public House in Sturbridge for dinner on the way back.

    Heading to Infestvest today.

    Have a great day and thats for your posts.

    Kevin

  2. Bruce B says:

    The software you will be introducing us to will obviously be damaging to individual investors. However, this software is probably also responsible for a large percentage of daily trading volume in the markets. The odds of it being banned are very low. If we choose to play in this arena, knowing what we know, we deserve whatever we get. If they want to level things and make the markets viable again, then maybe we can return. In the meantime, does anybody really want a child or grandchild’s college fund in this corrupt to the core arena?

  3. […] Howard’s “Good Bots, Bad Bots” piece is a must read if you’re wondering how web bot technology can exploit humans and […]

  4. Sash says:

    Yip, more code is going to save the world

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