The Dow plummeted today on news that a bomb had gone off at the White House. The source of the news was a Tweet on the Associated Press account. Turns out the account had been hacked.
The reason the Dow took a hit was because automated trading programs scour news feeds for the first sign of trouble. In fractions of a second, they dump stocks ahead of an anticipated decline. Basically, we have artificial intelligence managing our markets. But with low IQ and a hair trigger.
I’m sure this will end well…
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