There’s always going to be a niche for algorithms…they are 
not going away and are part of our world and we need to figure out how to deal with them. What is going to allow us to understand the ecosystem? He makes a good point with algorithms controlling futures and prices on natural resources that humans need and what can happen there. If you happened to read over the weekend, Southwest Airlines the latest Attack of the Killer Algorithms. You know in this video, he used that terminology too, “Killer Algorithms”.
Southwest Airlines Multiple Books Passengers Via Advertised Discount And Ran Up Consumer Credit Cards and Charged Bank Accounts – Attack of the Killer Algorithms Chapter 38
I said this 3 years ago and everyone somewhat laughed about a US Department of Algorithms but after last week I don’t think anybody’s laughing and the SEC did the right thing, be responsible for the formulas you kick out there…look where we are now and Dr. Gouley says in his lecture we have to learn how to live with the algos. He gets very scientific with his explanations while I use every day examples on how algorithms affect our lives.
“Department of Algorithms – Do We Need One of These to Regulate Upcoming Laws?
I’ll also go one up and add in another focus and that is flawed data that is used for decision making and it also is growing in leaps and bounds. Consumers on the markets today can’t compete with the machines and there is a lot of “Algo Duping” going on in more ways than one, both on the markets and off the markets. Dr. Gouley calls a lot of the activity “the black swans” making a lot of noise. He says the same thing I have said over and over, you don’t see them and again the ones in real life outside the stock exchanges is what the created the madness that nobody could understand. Read Chapter One from the Attack of the Killer Algorithms written in October of 2011.
Algorithms are not stable.
Complexities in Data Systems Growing Beyond Control –“Algo Duping” Society Combined With A World of Rogue Algorithms & Flawed Data Continues In Markets As Seen With Knight Capital This Week-Attack of the Killer Algorithms Chapter 36
Well we come to healthcare and when the machines read…
caution needed as we don’t want them to begin writing for a while yet. One more note, back in January when Richard Cordray took over as our consumer watch dog, I said I sure hope he knows formulas and algorithms and you should have seen the huge number of government agencies that hit that story:) That is why I say today that figureheads are hurting use and we need smarter folks to head up some cabinet positions and departments, SEC and HHS are two in most dire need right now.
What do we do when algorithms break a futures contract or worse yet one from a health insurance company? BD
President Appoints Richard Cordray as New Consumer Financial Protection Chief - Hope He Knows And Understands Correcting Flawed Math and Formulas To Battle the “Financial Attack of Killer Algorithms” On Consumers With Banks and Corporate USA
Dr. Sean Gourley is the founder and CTO of Quid. He is a Physicist by training and has studied the mathematical patterns of war and terrorism. He is building tools to augment human intelligence.
Description of Talk:
The speed of human strategic thinking is fundamentally limited by the biological hardware that makes up the brain. As humans we simply cannot operate on the millisecond time scale -- but algorithms can, and it is these algorithms that are now dominating the financial landscape.
In this talk Sean Gourley examines this high frequency algorithmic ecosystem. An ecosystem, Gourley argues, that has evolved to the point where we as humans are no longer fully in control.
http://www.youtube.com/watch?v=V43a-KxLFcg
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