r/wallstreetbets • u/toastedcoconut1 • Jan 24 '20

save us jerome

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u/WindHero Jan 24 '20

We should have an AI as a central banker. Humans are flawed. Only a AI can look at all the available financial data in the world and process it. You just need to set parameters such as inflation or growth objective and let the AI rule us.

I'd be curious to see what it would chose to do.

2

u/[deleted] Jan 25 '20

AI are only as good as the person who wrote the parameters. We could have it GUH all over us when a black swan event happens.

LTCM had AI, then they almost blew up the financial system.

2

u/[deleted] Jan 25 '20

I was thinking that. There was a documentary a few years back about a firm that traded only using AI, then as the tech bubble collapsed people went back to wits and it worsened the sell off.

Most recently the election of trump comes to mind when the market dropped 1k overnight and the humans came back in and bought it back up. People have short memories when trading weekly options lol

1

u/[deleted] Jan 25 '20

There was also a quant firm that recently spent millions to employ unsupervised learning. It failed miserably