/sci/ - Science & Math

[Anonymous No.1171636]

Finance is a dead end industry.

Financial workers don't actually create anything of value, they merely make money by finding minor inefficiencies in the market and trading on them. That's a problem, because there is an upper limit on how efficient the market can become.

In say, 10 years time, technology may have got to the point where the market is incredibly efficient, so it's impossible to make money by trading.

In the years leading up to that point, it will get harder and harder to make money, as the market becomes more and more efficient.

What does that mean for finance workers? Mass layoffs, and eventually they'll all be made redundant.

The finance boom happened already. There was money to be made, but there is less now. As time goes on it will only get worse.

Anyone getting into finance now has already missed the boat.

[Anonymous No.1171644]

not /sci/ related

thread reported

[Anonymous No.1171668]

I agree with you but i don't agree with you enough to elaborate.

[Anonymous No.1171678]

>>1171644
Finance->economics->Science and Math

[Anonymous No.1171681]

sage

[Anonymous No.1171685]

>>1171644
how is it not /sci/ related?
Anthropology can be considered one of the natural sciences.

[Anonymous No.1171697]

>>1171636
markets do not like to be efficient. This isn't likely to happen. However, if we toss markets in the garbage through the creation of personal fabricator nanotechnology or flexible superfactories, then you could display financial workers.

[Anonymous No.1171698]

Economics is another pseudo-science

[Anonymous No.1171700]

>>1171678
>economics
>Science

[Anonymous No.1171743]

reported OP

[Anonymous No.1171932]

finance insofar as loaning and investment will probably never go completely away

[Anonymous No.1171935]

finance is all about inside info, front running, abnd basically scamming the gullible, honest, 'long term' stock holders.

[Anonymous No.1171955]

>>1171700
>>1171700
>>1171700
>>1171700

lrn2gametheory faggot

[Anonymous No.1171966]

>>1171935

This. Goldman et al have statistically impossible returns now. They're not even trying to hide their gaming of the system.

Market efficiency is irrelevant nonsense for suckers, the real alpha males run the fucking table and do what they want.

[Anonymous No.1171984]

because there's no such thing as "new", right? : /

this "efficiency" you're talking about isn't efficiency, it's survivability in a competitive area. finance stabilizes international exchange rates, electronic goods prices, and anything that can be bought and sold near-instantly, near-instantly, while also making smart people tons of money. finance is necessary in an electronically-driven capitalist society.

and also, finance isn't an industry as much as psychology involves calculus. saying it is an industry is like saying you can make money researching mathematics.

[Anonymous No.1171995]

>>1171743

Reported for what, formenting debate, on /sci/ ?

[Anonymous No.1172000]

>implying stupid people won't prevent an efficiency of 100%, anytime, anywhere.

[Anonymous No.1172012]

>>1171935

Not all about but partly about. But besides that there is a /sci/entific component to finance which quants exist to exploit and which ed Thorp stumbled upon in the 1950s. I was referring to that when I claimed it is soon to die just like the babbage machines as it's functions were replaced by solid state circuitry that required no human intervention.

[Anonymous No.1172022]

Resource-Based Economy

[Anonymous No.1172025]

>>1171966

But Goldman cannot prevent you from reverse engineering nor duplicating their methods can they? They are just another player who siphons off the system what the rest leave behind in small change. Anyone else is welcome to come along and do it more efficiently.

[Anonymous No.1172048]

>>1172025
When the big players get to make their trades before everyone else, and get all the inside information because of their top connections to everyone else in the industry? Good luck duplicating that shit.

[Anonymous No.1172057]

>>1172025
The idea of being employed at Goldman, earning 700k a year if not more is enough to lure in most people capable of creating the algorithms and whatnot.

[Anonymous No.1172282]

OP
>there is an upper limit on how efficient the market can become.
stopped reading right there. bitches don't know about my market dynamics.

[Anonymous No.1172293]

>>1172057

Maybe so but they cannot lure every such person on the planet, leaving the rest of the world without the same tools. All it takes is an upstart company that starts to pick up the crumbs that Goldman missed and then build up from there.

[Anonymous No.1172301]

Not really
As soon as scientists and engineers master robotics and nano technology the stock market will boom and financial workers will make ton of cash out that
That'll be after the alternative energy bubble

[Anonymous No.1172347]

It seems you require a refresher course on basic social interaction.

It is not close-minded for someone to disagree with you, and tolerance does not require acceptance or even acknowledgment.

http://www.youtube.com/watch?v=T69TOuqaqXI

Critical thinking skills:
http://www.youtube.com/watch?v=6OLPL5p0fMg

Study the material carefully, because there will be a test later.

[Anonymous No.1172388]

Elaborate, what is an "inefficiency" in the market?

[Anonymous No.1173240]

>>1172388

An opportunity for the nimble to exploit for profit. Said opportunity caused by the inefficient or total lack of ability of the rest of the market to capitalize on it. The more pea brained random, emotional tards there are trading on an exchange the more inefficient will be their exchanges and thus the more opportunity for profit for those people and machines that know how to milk it out of the system.

[Anonymous No.1173360]

>>1172388
Your rubber band is priced for sale at $1.

If I can buy it from you for $1 and sell it in Canada for $2 then that's an inefficiency.

In an efficient market everyone knows the sale price of rubber bands everywhere, so people swarm all over any little inefficiencies, thereby eliminating them almost immediately and everything is priced at its proper level.

[Anonymous No.1173374]

Finance isn't all about correcting prices in the market. Often times it is about taking on risk by financing start-ups and providing insurance on loans and investments.

[Anonymous No.1174354]

sounds about right.