The New Speed of the World.
I was listening to Planet Money's Podcast about the Swiss Franc being too strong. It reminded me of an idea that I have been building on for a few years.
You have to listen to the podcast to hear what I am talking about. The main theme is that money is flowing into Switzerland because how strong their economy is. The money is flowing is so quickly it is hurting this economy that is so strong. The problem is that Switzerland is so small, they have no way them to impact the effect of this flow of money. So many people buying Swiss Francs that they can destroy the economy they are investing in.
It the world of the internet and where the speed of information and capital are not limited by anything. With high speed computer trading you do not even need to be slowed down by people making decisions. As soon as someone can make money doing something, the whole market will be right behind them.
At one time these kinds of trading reminds of of a blog post that Mark Cuban made about the Business of Wall Street. We are in a world where financial services are disconnected from the rest of the world. They will make money by exploiting an idea until they destroy the actual value of the system that is really producing something. The problem is the rules have not caught up to these ideas. I am not sure the rules can catch up to these ideas. It makes me wonder if financial services are just another part of the World of Weeds, chocking out real ecosystem.
You have to listen to the podcast to hear what I am talking about. The main theme is that money is flowing into Switzerland because how strong their economy is. The money is flowing is so quickly it is hurting this economy that is so strong. The problem is that Switzerland is so small, they have no way them to impact the effect of this flow of money. So many people buying Swiss Francs that they can destroy the economy they are investing in.
It the world of the internet and where the speed of information and capital are not limited by anything. With high speed computer trading you do not even need to be slowed down by people making decisions. As soon as someone can make money doing something, the whole market will be right behind them.
At one time these kinds of trading reminds of of a blog post that Mark Cuban made about the Business of Wall Street. We are in a world where financial services are disconnected from the rest of the world. They will make money by exploiting an idea until they destroy the actual value of the system that is really producing something. The problem is the rules have not caught up to these ideas. I am not sure the rules can catch up to these ideas. It makes me wonder if financial services are just another part of the World of Weeds, chocking out real ecosystem.
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