It's been a few weeks back but if you had the opportunity to watch the PBS Frontline report it was a sad state of affairs. Sadly and no disrespect here but I can't figure out for the life of me why we feel attorneys are to head departments in the government where math, business models and math are involved. We lose every time. The folks need to be able to walk and chew a little code.
It's like we are sending someone in with a pocket knife to go to battle against those waiving machine guns. I'm not the only one out there in technology that sees this and plenty talk about it and we scratch our heads. Why? It keeps happening and the days of a figurehead being able to make intelligent decisions and actions to take based on 6 bullet heads in a document are long gone. There's CEOs too that still try to operate that way.
When I watched the PBS documentary, the first five minutes that Manny from the DOJ spoke there was not a sound of "confidence' nor any body language that indicated any. I'm a tiny tech and there's people out there much smarter than me for sure but if I could see it, where's the rest of them speaking out I ask?
Money is moved by crafted business models and then software is written to execute the models and they all have an IT infrastructure that runs it. By contrast we see laws written that are many pages of text, but before the law is even published banks, companies already have several mathematical business models built to choose from based on the end result of the law. There could be a few million models, but this how they do it. They will use their technology to find any and all loopholes to run computer code without violating the law and that's what we have today, which I call the Attack of the Killer Algorithms. Nobody looks for accuracy.
At some point in time we need to be able to subpoena a business model so a Quant working for the US can validate the code and model, do we do that now..nope. That's where old Manny from the DOJ was stuck. You need to be able to think like the banks and companies mathematically to find the fraud. Sure using traditional methods is useful too but to nail them where it originates, lawyers don't get it. Certainly any executive head needs a slew of them to advise, so don't get me wrong there, but the head person has to know math and be an equal to investigate, we don't have that now. If you didn't see the Frontline report I have embedded here along with more of my thoughts here.
This is probably one of the best videos I have seen that gives you an idea of what the battle is, even if you don't understand a lot about math, the Quants tell you here. These are guys that got started years ago and worked for the banks when the word quant was not even around. Basically they were there to write models and create better efficiencies but it played a lot different as math and code built on itself. Again don't expect to understand everything here but you will get the idea.
This is what runs the entire economy, computers with math models and formulas. I could relate to the programmer as that is what I have done, not financial at all but healthcare programming and the hours and time it takes is tremendous. Listen to how what this talent does to folks as whether it's a quant or programmer they feel superior and that happens in other areas too as when you think about it, they are controlling everything. We are all not that way thank goodness as what I did never controlled money but was rather for efficiencies is what I did with healthcare.
It's a skill not everyone can do and again pay attention to that programmer part in here that wants that money and control. The man who wrote the original software way back too had no clue what banks would do with his basic software and thus he was out by 2000 and they took it and bundled code and algorithms and made trillions. Again I'm bringing this out to show the reality here and that until we get to the core of how this runs on IT infrastructures, we are kind of stuck to really get the potential criminals cornered.
So I for one am so so disappointed in not seeing a government that is sending one of equal in to do battle here for us. When I see yet another attorney to run the SEC, we all just shake our heads. Again folks smarter than me like the company Nanexwho monitors all the trading and gave the SEC the flash crash analysis on a silver platter just can't figure out why they stay on this same inefficient path as this is big deal.
If you never saw the movie "Inside Job" you can watch it here as I found it on the web available to embed.
I have other educational videos from others at my Algo Duping page from folks smarter than me too that are some real eyeopeners.
I just sure hope the US gets smart soon as we are under theAttack of the Killer Algorithms and we need investigators that can zero in and know where to look and what to look for beyond taping phone conversations and other traditional means. Again I watched the Frontline PBS video and again my thoughts as well wondered into what in the world is the justice department doing? Was anyone watching the show and do we have someone at the top that clearly understands what type of highly sophisticated white collar crime this is? It scares me to death to see cabinet heads without "some" technology in their backgrounds as the matters to be investigated are way beyond the comprehension of many and of source we saw Mr. Manny resign after the video. I would have been completely embarrassed to speak that way on camera but again if they don't have some tech background then they have no idea on how they will be viewed by those who do.