Crumple wrote:Seths idea is just another system and will be corrupted in time.
Well, you've got to work with what's available and keep correcting it when it goes awry, that is true.
What you need is natural law - small markets where people know each other and buy, sell, demand taxes and determine prices by natural human interaction. Computer generation of stocks and shares should be abolished. It doesn't work - and it doesn't work big time as we're all about to find out.

There is a good deal of truth in this statement. Even the federal regulators recognized that in a world of micro-second computer trading, "circuit breakers" are needed to stop feedback oscillations in the system that can grow quickly to destructive proportions.
In aviation it's called a "pilot induced oscillation." This is a delay between a pilot's sensing of a departure from normal in pitch, roll or yaw (most often pitch) and his reaction and input to the controls that puts the correction in phase with the pitch change rather than out of phase with it. This causes the pitch to increase more, and the pilot again tries to add a bigger correction to reverse the change, but again it's too late because of reaction time lags, so it's in phase and increases the pitch deviation again, making it larger. This can quickly get to the point where the aircraft fails structurally as the aerodynamic forces of the increasing pitch oscillations grow huge.
Exactly the same thing happens in stock trading. In the old days, when there was a human element in the mix, fluctuations in the market were slower to amplify. With microsecond trading and automatic buy and sell orders, the system can oscillate out of control in a matter of minutes, before anyone realizes what's happening and can put a stop to it.
It's actually pretty dangerous for our economy, and it's a worldwide risk because the markets are global now.
"Seth is Grandmaster Zen Troll who trains his victims to troll themselves every time they think of him" Robert_S
"All that is required for the triumph of evil is that good men do nothing." Edmund Burke
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