It keeps heading in this direction and with the testimony scheduled today with Jon Corzine testifying with Congress wanting to know more about their accounting and how it works, it doesn’t get any clearer. Software is a good thing and makes us smarter but software, in the words of Bill Gates is nothing but a group of algorithms, can be written to help companies financially benefit. This should be no surprise to anyone at this point and hopefully we will all come out of denial and recognize this fact that this is the root of the financial problems today.
If you read around this blog occasionally over the last couple of years, there are tons of articles about “bad math” and let’s face it, numbers today are manipulated by the use of software and algorithms. Again, I go back once more to the post I made back in August of 2009, is it time for a “Department of Algorithms” to audit financial math? I don’ t know how much longer we can exist without something of that sort in place to keep folks honest and so far I don’t see much happening in this area and why I constantly harp on the fact that key executives today need to have some IT background as those who don’t are just lost and you read it every day in the news.
Even key former investment folks like Jon Corzine probably enjoyed success for a number of years due to the algorithms developed by the folks he employed. You tell developers what you want and pay them royally and they will produce the product and set the algorithmic automation to do it. It’s been going on for years but with today’s real time aggregation methodologies of data and money, well you kind of know the story there, the servers run 24/7 running that code.
It gets worse too as the more data they collect, the more data they want, and granted a lot of it makes us smarter and we need it, but it makes money too with moving money around and the methodologies are hidden in the code with layers of algorithms now at work. It all comes crashing down when the algos run and there’s no real money left to make a match any longer.
CMS to Put Doctor Claim Data Online–Helps Avoid a Dow Jones Lawsuit But How Much Use Or Abuse Will It Really Merit As Most Are Not Skilled Enough To Deal with Flawed Data
Next up is the inability to use some of the formulas intelligently and we see this happening all over the place too. Our Congress seems to like these algorithms that allow them to play solitaire or cruise Facebook while in session according to this picture below.
Our taxpayer data is sold all over the place and available to big corporations for free and this creates billion dollar profits too and we should license and tax companies who are using the “free taxpayer data” they mine.
Privacy Wanted–So Let’s Require Those Who Sell Web Data to Register and Tax the Transactions and Publicly Disclose Who They Sell To With a Federal Registry
So as today’s testimony unfolds it will be interesting to see what algos caused the money to be lost or deleted for that matter. I wrote a series about the Attack of the Killer Algorithms and part 6 is below as us, the middle class are destined to become data chasers to fix all the flawed data that’s around to judge us…its going to be a daunting task but will continue until adequate audits take place to make corporate USA accountable. BD
Attack of the Killer Algorithms Part 6–Discrimination With Consumer Credit-Same As Health Insurance Wanting Consumers to Reconstruct Records From Many Years Past As Middle Class Turns Into Data Chasers-Days of Taking Risks to Get Ahead Will Be Limited For Most…Occupy Algorithms
Former U.S. Sen. Jon Corzine is returning to Congress on Thursday, but not by choice.
Corzine will be testifying before a House committee in his first public appearance since the bankruptcy of the company he led, MF Global.
Corzine was subpoenaed by the agriculture committee, which is investigating the circumstances surrounding MF Global's sudden downfall in late October.