Is information technology accelerating the wild swings in the market?
Oil barrel prices, thought to cross over $200 are now around $50. The stock market jitters 5% – 7% in a day looking like warmed-up jello. The talking heads on TV are talking with more emotion and I can see their veins popping on my high definition TV. Watching the stock market, I get the sense we are behaving like a large flock of birds. At the first sign of any perceived threat and the lead bird takes off and the whole flock blindly follows.
The whole world is joined together in a synchronous flow of information, made possible via the information technology of the past decade. We are all jumping up and down at the same time in our small pool making larger and larger waves and splashing water all over the place.
Would we be better off if we weren’t so connected?