/biz/ - Business & Finance

>>55135196
>The two forms that this really takes in the modern world is data and market manipulation and over-leveraging. And once again, my strong belief is that if we can make the financial system work properly, then we can have a much better world both domestically and on a global level. So the first version of this problem is this data manipulation, market manipulation problem, which really thanks to technology and globalization is only accelerating in size and scope. So if before, market crashes happened locally and they were small, now market crashes happen globally and they are large and they effect very very large pieces of the population. This data manipulation, market failure problem is basically created by people who are extremely driven by the profit motive which is fine, what’s not fine is that they basically make society pay for it. Enron is a good example, the Libor scandal, which affected 300 trillion dollars in assets and had over 10 billion in fines is another example. Another recent examples are where traders, hedge funds, market makers, people gathered around places like the Chicago Mercantile Exchange and others, basically manipulate commodity and Forex prices, which actually affect all of us because commodity and Forex prices determine what the goods we consume cost and what we pay for those goods. So the first problem is essentially a market manipulation problem that’s really often a data manipulation problem because markets are driven by data.