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Richard Stallman has been way undervalued, as a whole, in the last couple of decades. He has predicted this and other similar situations and worked his entire c
by ryanx435 9y ago
Richard Stallman has been way undervalued, as a whole, in the last couple of decades. He has predicted this and other similar situations and worked his entire career to try to prevent the "tyranny of software companies", or however he phrases it.
If you don't know who he is, or haven't read up on him recently, please check him out.
He gave a talk at my college back in 2007/2008 that I went to, talking about quants and investment algorithms, and how they had directly contributed to the economic collapse. He made the point that, because all of the algorithms were closed source and not open to public review, they were dependent on the market understanding of the individuals who wrote the algorithms. Given the nature of humanity, many of those individuals likely had faulty or incomplete understanding of the markets, and therefore the algorithms also misunderstood the markets. Free (open sourced) code could have prevented that.
Well, i'm not sure I agree with his conclusions about that. I asked him about his thoughts on the recursive effect the algorithms would have on the market (the algorithms were so prevalent that they basically were the market makers, thus changing the market itself to reflect their faulty assumptions about the market before their existence).
He said it was an excellent question, didn't have an answer, and offered me an internship to work on that problem under his direction. I declined for various reasons.
anyways, he was correct about a lot of things.
(https://en.wikipedia.org/wiki/Richard_Stallman https://en.wikipedia.org/wiki/Richard_Stallman) (https://stallman.org/ https://stallman.org/)
- cheez 9y agoDisclaimer: I wrote some of those algorithms. I used to believe that as well: the algorithms are gobbledygook, but once I got into it and really understood, I realized it's use of the algorithms that was problematic. The first time I priced mortgage-backed "bonds", I was honestly aghast as to how it was possible to perpetrate such a structure. After a lot of testing, I realized that the models were fine, but the politics behind choosing the parameters were to blame (hint: the ones that gave the best bonuses). Just my 2c. Stallman is smart, and correctly called a lot of the stuff that is happening now, but I don't think he is right there.