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I think they suck just like crypto, these are all mechanisms rigging the economy in favor of the already wealthy. If we don't unrig it we will eventually get c
by moose_man 3y ago
I think they suck just like crypto, these are all mechanisms rigging the economy in favor of the already wealthy. If we don't unrig it we will eventually get civil war. Popular immiseration eventually leads to upheaval.
Checkout the book - End Times: Elites, Counter-Elites, and the Path of Political Disintegration by Peter Turchin
- reisse 3y agoAlready wealthy? I don't think you know the scene well. HFT probably pulled more physics and math grads out of poverty than any other field.
- treyd 3y agoIt's also pulled those grads away from more typical jobs they'd have building useful things and actually producing new real-world value.
- mratsim 3y agoReal world value for which they'll be paid post-doc/PhD wages and be carrying student debt like Sisyphus carries his boulder for all eternity.
- reisse 3y agoI don't really want to start a debate on how HFT produces real-world value, but just consider that if these things you talk about are really useful and valuable, they might also provide competitive salaries to attract people?
- treyd 3y agoWhat pays the most only loosely correlates with what produces the most value for society. It's easy to skim a percent here and there off hundreds of billions in volume shuffling around without the owners of those billions caring much, but it's much more difficult to see how that, on the whole, actually improves the condition of your neighborhood.
- RandomLensman 3y agoYes, they might create more non-monetary value elsewhere, but that trades off against what non-monetary value the money they make creates now.
- jekrb 3y agoWhat if the work these folks do to increase market efficiency does produce real-world value, as slower verifiable economic information would increase periods of uncertainty and price slippages? Or the HFT engineers producing research and products that speed up general compute, such as accelerating SHA and ED25519 signature verification, so that their trading shops get information faster? I wonder if there are actually a lot of third-order, downstream effects that society gets by paying engineers to just make computers and telecommunications faster.
- treyd 3y agoSlippage in the price of cabbages at my corner market? I don't think so. There's very good evidence that as the finance sector grows to be a larger portion of the economy (which it very much is compared to 50 years ago) that increasing inequality goes along with it, as the profits made in the finance sector are mostly rent seeking from the rest of the economy. You could also interpret it as a private tax on all other economic activity.
- Ekaros 3y agoJust look at UK... Largely based on finance sector and it does look pretty bleak for those outside... And I am not even sure if that is yet the end state... There is some value there, but the cut they get is likely too large already. Then again it is all just fake numbers...
- oliveshell 3y agoThe fact that this comment was grey from downvotes when I found it is the most HN thing on the planet.