Comment by jay_kyburz
2 years ago
I think you missed my point.
If the stock market crashes, there is a bug in the stock market.
You should fix the bug, not pass a law telling people not to do the thing that cashes the stock market.
2 years ago
I think you missed my point.
If the stock market crashes, there is a bug in the stock market.
You should fix the bug, not pass a law telling people not to do the thing that cashes the stock market.
Nice sentiment, but exactly nothing outside of purely theoretical mathematical constructs work like this. Hell, even math doesn't really work like this, because people occasionally make mistakes in proofs.
EDIT: think of it this way: you may create a program that clearly makes it impossible for a variable X to be 0, and you may even formally prove this property. You may think this mean X will never be 0, but you'd better not wager anything really important over it, because no matter what your proof says, I can still make X be 0, - and I can do it with just a banana. Specifically, by finding where in memory X is physically being stored, and then using the natural radioactivity of a banana to overwrite it bit by bit.
Now imagine X=0 being the impossible stock market crash. Even if you formally prove it can't happen, as long as it's a meaningful concept, a possible state, it can be reached by means other than your proven program.
Bubbles in the market have been happening for hundreds of years; how would you propose fixing them? Because the only things I can think of tend to erode the whole idea of a market.
It's not really my job to debug the stock market, and well, yeah, perhaps the solution is to have a less free market. I would remove High Frequency Trading for a start. I would make trades slow, really slow. So slow that humans can see and digest what is going on in the system.
All I'm saying is, if there are problems in a system, fix the system. Not throw up our hands and declare the system can't be fixed.
Reality doesn't work that way. Systems are conceptual ideas, they have no real, hard boundaries. Manipulating a system from outside it is not a bug, and is not something that can be fixed.