Kroft: computers trade all stocks nowadays
which is not unexpected if you’ve seen the Terminator movies
Kroft: Big banks own computers which
on their own trade a billion shares of stocks a day
Audience: how nice
Kroft: Do humans do any trading?
Computer trading guy: hell no humans
are slow and stupid
Kroft: why would you buy a stock and
hold it 30 seconds?
Owner: it’s called buy hold and dump dude
Kroft: how do you make money doing that?
Owner: did you ever seen Superman III
with Richard Pryor?
Owner: we make 40 million pennies a day
Kroft: so the computers don’t know if the
CEO is a crook or having an affair
Owner: right - it’s all math
Kroft: you take human beings out of capitalism
Owner: it seemed only logical
Other guy: you can’t make money
doing this without cheating
Kroft: they’re not cheating - they just
have fast computers
Other guy: that is cheating Steve
Kroft: traders will pay for access to information
normal people can’t get
Stock Exchange guy: right it’s genius
Other guy: this is more cheating
Kroft: but it’s only for milliseconds
Other guy: you poor deluded fool
Kroft: but doesn’t this create jobs?
Other guy: no it’s just guys rigging a casino
Stock exchange guy: look if you’re holding stocks long-term don’t worry if the computers will become self aware and foreclose on your house
Kroft: the chances of that happening are slim
Stock exchange guy: right like one in five
Sen. Kauffman: did you ever seen
2001: A Space Odyssey - these computers may
kill us all for no reason!
Kroft: that almost happened last year
Schapiro: that was scary
Kroft: should we put computers in charge of our retirement funds?
Schapiro: Algorithms almost sold the US government to China last spring
Sen. Kauffman: there are a small number of people swimming in a river of wealth
Stock guy: we have to trick people into putting all their money into a system clearly rigged by a select few to get rich using computers you can’t see or use
Kroft: of course