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Jesse Brown: Let’s blame computers for the financial meltdown!

Wednesday, October 22, 2008 | 11:13 AM ET

By Jesse Brown, CBC technology columnist.

evil-inside.jpg

No one seems to be able to clearly explain why the world is suddenly facing a complete economic meltdown, but that hasn’t stopped politicians and pundits from pointing fingers.

The Democrats blame the Republicans (“See? This is what happens when you don’t regulate Wall Street!”). The Republicans blame the Democrats (“See? This is what happens when you let just anyone buy a house!”).

Neither side makes a very compelling case, and so a new culprit has slowly emerged as an all-purpose scapegoat- computers!

The story goes like this: Wall-Street’s math geeks whipped up ridiculously complicated financial algorithms that would shuffle through seas of toxic mortgages, swapping and slicing them into top-rated financial products. The machines were so darn smart (and profitable) that our financial titans had no choice but to leave them in charge of our entire economy.

When the whole enterprise collapsed and the market dipped, other evil computers, which Wall Street had left in charge of stock trading, simultaneously pulled their automatic “sell!” triggers, turning what might have been a minor s#!tstorm into a major clusterf#@k.

Damn computers! What are we supposed to do now- think for ourselves?

Here's a NYTimes Op-Ed with more.

Thanks, Ronan.

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Comments

Jason Kaczor

Heh - I guess greed & duplicity don't factor into play?

Who decided to use the "complicated algorithms" and why? Programmers do not run the banking and financial institutions...

Posted October 24, 2008 01:29 PM

Dragonflight

Ontario

The problem with ludicrous scare stories like this is that anyone with half a brain will dismiss it, those who want to believe will believe it...

And the middle ground, which represents *most* of the public, will follow whoever is offering up the scariest accusation because, in theory, if the accusation is outlandish *enough*, it pretty much *has* to be true, because no one would say something so horribly untrue, would they?

Bah. Go ahead, people. Unplug and throw out your computers. After you've been forced to think for yourselves for a few years, you'll be better for it.

Posted November 1, 2008 12:02 AM

Richard

Wow!! What wonderful language to use on a major news website..... "minor s#!tstorm into a major clusterf#@k. " This is shamefull to find in a "professional" reporters work that can be freely viewed by children; especially when the children will know what the "hidden letters" are. CBC should be embarrassed by this profoundly unacceptable use of language!

Posted November 17, 2008 11:41 AM

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