I've been warning you folks about the billions that Goldman-Sachs and others are pouring into High Frequency Trading -- that this investment will not only warp and distort financial markets in hugely unfair ways, but that also might threaten us with the very worst kinds of emergent artificial intelligence (AI). Now researchers have studied these ultra-rapid computational processes and determined that: "far from simply generating faster versions of existing behavior, we show that this speed-up can generate a new behavioral regime as humans lose the ability to intervene in real time."

They add that "transition to a new all-machine phase (is) characterized by large numbers of subsecond extreme events."  They even use some terminology similar to mine, concluding that these results are: "consistent with an emerging ecology of competitive machines featuring ‘crowds’ of predatory algorithms."  

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