Stock Volatility is Computer Generated

stock-exchangeBy James Hall

The actual productive economy has very little in common with the erratic and substantial movement in equity pricing on the major exchanges. The conditions for conducting commerce have not appreciably changed in the last days to warrant a numerical drop of historic proportions. For the working class and the consumer market, the price of items did not see a major drop or rise in value in this latest turmoil. Lost in the confusion is that the professional speculators won’t be playing a game of chance, they will execute their financial triggers based upon mathematical algorithms implemented at lightning speed by super computers. The days of the “specialists” making a market has been dead for years.

There is no such tangibility as an investment when the underlying security is based upon a third party financial instrument. This is a primary reason why the real economy must be reflected upon the actual transactions of buying and selling.

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