Elites literally hack the stock market with AI...do we STILL need a Stock Market?

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posted on Jul, 14 2010 @ 11:22 AM
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First Goldman Sach's begins to dominate with Artificial Intelligence stock scheming, now hedge funds are following suit. This overall story is massive and is just beginning to surface. This is already proving that he with the most powerful AI will rule the world.

Whats the point of even having a stock market if AI's will dominate it and can literally shut down the economy with it as we've already seen with the fuel price manipulation a couple years ago (that conveniently happened while the housing bubble was popping)?


While the SEC is busy investigating Goldman Sachs, it might want to look into another Goldman-dominated fraud: computerized front running using high-frequency trading programs.

Market commentators are fond of talking about “free market capitalism,” but according to Wall Street commentator Max Keiser, it is no more. It has morphed into what his TV co-host Stacy Herbert calls “rigged market capitalism”: all markets today are subject to manipulation for private gain.
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Also called High Frequency Trading (HFT) or “black box trading,” automated program trading uses high-speed computers governed by complex algorithms (instructions to the computer) to analyze data and transact orders in massive quantities at very high speeds. Like the poker player peeking in a mirror to see his opponent’s cards, HFT allows the program trader to peek at major incoming orders and jump in front of them to skim profits off the top. Note that these large institutional orders are our money — our pension funds, mutual funds, and 401Ks.
ignoranceisfutile.wordpress.com...





"Nearly everyone on Wall Street is wondering how hedge funds and large banks like Goldman Sachs are making so much money so soon after the financial system nearly collapsed," writes the New York Times' Charles Duhigg in a front page piece that’s been the talk of the town in New York and Washington. "High-frequency trading is one answer." Duhigg writes, “High-frequency trading systems are so fast they can outsmart or outrun other investors, humans and computers alike."
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There are several possibilities about what’s going on here. One is that Goldman and others are literally using privileged information to make trades ahead of markets, in which case they are committing a felony. Specifically, this is known as "front-running," or trading ahead of customers, and it is an explicitly illegal form of market manipulation.
www.hplusmagazine.com...


"Rebellion Research":

One upstart in the AI race on Wall Street is Rebellion Research, a tiny New York hedge fund with about $7 million in capital that has been using a machine-learning program it developed to invest in stocks. Run by a small team of twentysomething math and computer whizzes, Rebellion has a solid track record, topping the Standard & Poor’s 500-stock index by an average of 10% a year, after fees, since its 2007 launch through June, according to people familiar with the fund. Like many hedge funds, its goal is to beat the broader market year after year.

“It’s pretty clear that human beings aren’t improving,” said Spencer Greenberg, 27 years old and the brains behind Rebellion’s AI system. “But computers and algorithms are only getting faster and more robust.”

Some sophisticated hedge funds such as Renaissance Technologies LLC, based in East Setauket, N.Y., are said to have deployed AI to invest. But for years, these firms were the exception. Some firms that have dabbled in AI are skeptical it is anywhere close to working.

Rebellion is part of a new wave of firms using machine learning to trade. Cerebellum Capital, a San Francisco hedge fund with $10 million in assets, started using machine learning to invest in 2009. A number of high-frequency trading firms, such as RGM Advisors LLC in Austin, Texas, and Getco LLC in Chicago, are using machine learning to help their computer systems trade in and out of stocks efficiently, according to people familiar with the firms.
online.wsj.com...


And this is just the beginning... project forward 5 years under these people empowered by these machines.

[edit on 14-7-2010 by IgnoranceIsntBlisss]




posted on Jul, 14 2010 @ 11:29 AM
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The only solution to the current economic debacle is to opt out of the process entirely. Since that is not possible one person at a time, it is not likely to change.

People have replaced their faith in God with a faith in currency.

To answer your original question. No there is no need for a stock market.

Almost every group of majority owned shareholders is made up of the board of directors. All alleged claims that returns are owed to the shareholders are done by the owners which by all definition should be a conflict of interest. Ruining worker’s lives to get a better return on your investment is unethical.

Allowing corporations to buy politicians simply pushes forward the corporate agenda. More and more CEOs are entering the ranks of politics and supporting the corrupting banking institutions.

At the end of the day, we should all pray for the last 5 minutes of Fight Club to come true where all the financial institutions are obliterated.




posted on Jul, 14 2010 @ 12:02 PM
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That entire news debate was just wasted filler time. No one there got a truly coherent statement in because of all of the cross talk and chatter overlapping. They screwed the pooch on this interview and data release because they put 2 high spirited, polar opposites across from one another and got nothing at all accomplished.

I know absolutely nothing more now about HFT than I did 1 second before hitting the play button on the video.

Then again, perhaps that was the point. To make a "show" of getting information out, knowing no coherent information would come out and just time filling for the sake of drama.

Isnt mainstream wonderful?



posted on Jul, 14 2010 @ 12:17 PM
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The "common" people selling all their stock and reinvesting in local banks and companies might be another way to take back our money and country from these bailed out bandits. Just thinking out loud.



posted on Jul, 14 2010 @ 12:32 PM
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Yes the stock market is evil but without it myself and many others would not have a job not to mention a 401k retirement savings.



posted on Jul, 14 2010 @ 12:35 PM
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A few more raids by them and "crashes" and your 401K is going to go down the tubes like a lot of our already did. All your 401K is is another pot from them to steal from. First they raided pensions and convinced people, at a loss, to invest in their own 401Ks (costing them less and you more). Now they're going after the 401Ks a bit at a time. They just haven't gotten around to you yet.

[edit on 7/14/2010 by ~Lucidity]



posted on Jul, 14 2010 @ 01:01 PM
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Remember a few weeks ago when the Stock Market lost like 10% of its volume in a 1 hour period? Created a huge sell off, and was later blamed on a glitch in one of these AI programs? They ended up undoing any and all trades that occured during that 2 hour window (or something along those lines).




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