Technical Discussions

Thoughts on Engineering & Technology

Rebellious behaviour has positive reaction

This article is a interesting  confirmation of what i already observed.

Researchers found that people find those who are more likely to break the rules more likeable


December 23, 2008 Posted by | psychology | Leave a comment

Saving Global Markets

Everyone involved in tackling the Global Free market meltdown has been tackling different aspects of the problem. The focus is on getting the global economy back on rails, putting growth back onto the charts and preserving savings, jobs and the macro-economic infrastructure of the world as we know it today.

In my opinion, all this started in 1987 with the first increase in volumes of trading that could no longer be sustained by legacy systems. This led to the initiation of large scale electronic automation. Following NYSE would show you that the exchange almost runs itself. Here’s an open-book on the history of this automation. Almost all other exchanges were modeled after this as free float indices.

New Technology has made it possible to deal with the huge volume of trading. The current consensus is to impose more stringent regulations on free market trading. Regulations by themselves will have to be subtle and provide guidance rather than impose rules to avoid contradicting the fundamental principles of the free market.

Technology empowers volume trading at speeds no one can react to (e.g. Friday, 24-Oct-2008, Dow Jones opened and lost 400 pts within the first 5 minutes of trading.) I have witnessed numbed retail investors pulling out when the markets were sliding for no rhyme or reason thinking that they would ensue some liquidity for themselves that could be invested in Savings Bank accounts. Investors are psychologically said to follow a herd mentality [citation needed]. When some start selling, a domino effect ensues ending in a worsened market slide. Investors from either institutional, corporate or retail sector react similarly however educated they might be in financial investments.

My proposed solution to dealing with the global market slump might sound naive, but is quite plausible. With the present crisis in hand we can slow down volumes of trading using the “Automated Systems.” I propose a system of limited transaction credits and limited volume credits for trading for all types of investors. An investor involved in high volume buy-ins or sell-outs can be restricted. The same can be done for high transactions (for those who have multiple holdings.) This can be imposed globally. The end of the European-Asian summit showcases the willingness of governments across the globe to tackle this “together”, in their own words, “with teamwork.”

The main idea is to slow down the system. As humans we are adept at solving problems once they slow down to a rate of change that can be delt with. Human biological response to rapid change or speed has limitations. Road Safety norms also propose speed limits to help us react better to situations. Like “Formula 1 Racing“, high speed reaction requires entirely different technology, training, psychological preparedness to react ahead of events (even turns) and huge risk mitigation (car safety in Formula 1 today is at an all time high.) This is certainly not the case with investors of all portfolios.

In 1929 when the economic crisis ensued, we had fewer free markets and the hit was considerably bad. However, today the markets are distributed across the globe. Such a system is also prepared to share risk and reward rather than cascade effects of a single source of investors.

If we slow down the pace of trading, we would be able to choose the right regulations in the interim to stabilize economy. We know that there is a global economic slow-down, either that takes control of our decisions or we take over the slow-down.

The first thing human beings lack when tackling a looming crisis is patience. That is the first part that we need to face this crisis. Regulation of free markets to slow them down might force introspective solutions to strengthen the markets. The second think we do is to search for a scapegoat in retrospect. I am convinced that the NATO war against Iraq (mostly supported by the U.S.A. and U.K.) will be on top of the lists. There will be many such on the list. Retrospect will reel our focus away from the future forcing us to make more mistakes going forward. This is the first thing we need to avoid.

My solution, Take the very technology that allowed high volume, high speed trading and use it to slow the system down. This is the very first step to avoid a high-speed 1929 styled crisis. The worst part is, if we don’t use the technology that helped the slide, we will find ourselves moving into disguised socialist reforms in all countries. This might prove contradictory to the global free market economy that has been built over decades. Capitalism is not bad, free markets are not bad, gaming in markets is not bad; it is as close to a natural process without an illusion of control.

October 25, 2008 Posted by | Artificial Intelligence, Business, psychology, Software | , , , | 2 Comments

Evolution is over …?

No suprise here , just proving what we already feel as a race , but i do have a pet theory that maybe for us the mind was a constantly evolving entiry in the electromagetic sense and so powerful that the body didn’t feel the necessity to evolve any furthur , this is just my pet theory , but does anybody know if dolphins stopped evolving once their brains attained intelligence , but there is another dimension to this which might make it a general theory all species of animals which exhibit suffient intelligence skill ( deception , subterfuge ) etc have stopped evolving ( I think my dog is very intelligent , in fact intelligent enough to escape from my house while closing the house gate ..:)  , so either i am slow  or my dog is more intelligent than me ) , But animal intelligence is not accepted by the general scientific establishment , so maybe we have to wait for the whale’s to send their mothership to destroy the earth and we’ll really start learning ( capt’n kirk trek movie ) .

October 9, 2008 Posted by | psychology | , , | 2 Comments