/biz/ - Business & Finance

Actually, I have a strange theory and involves computers and their impact on market data and the hotness of cash flows around 1971.
It was precisely when integrated circuits really began to bubble and computer systems had reached a level of efficiency where things like C emerged and made things more and more easier to use computers faster with regards to the market.
So this destabilised the market and the spread between nominal and real value began to rapidly increase.

It allowed easier tracking of cash flows and supply inventory counts.
But it also increased complexity to the point where people were really starting to not keep up on where the money was really going.
And that made it easier for cartels and rackets to pounce and get away with things.

It is precisely 1971 when this shit began to happen. I think these things even caused the end of the Bretton woods system. The acceleration of innovation and technological efficiency in the market exploded precisely because of one major innovation - the integrated circuit.
Whether the end of the Bretton woods system was a reaction to rapid innovation or increase technological advancements or whether that premise was a lie to cover up the con for the existence of such a system is beyond me. All I know is that these two things started to explode in 1970 (ICs) and 1971 (FIAT).