Tuesday, September 18, 2012

1823 Techno Pay'n

We're becoming so dependent on our little labor saving computer programs and apps, you wonder what it's going to take to wean us from that techno-teat.
Two items in the news recently show what I mean. First, the Trading firm Knight Capital almost went bankrupt because of a computer glitch in its automatic trading system.
High speed computer trading has saved investors millions in expensive fees. Except not so much in Knights case. It was the knight of the living dead for them, as their zombie computers relentlessly committed mindless trades that lost them $440 million in a single day, more than the $289 million they'd earned the entire previous quarter.
Thank you computer glitch. A group of investors stepped in and saved the company in return for a 73% stake but existing stockholders took it in the techno-shorts.
Not what they ordinarily mean by short selling.
The other item of concern is that Starbucks and Square are teaming up to allow customers to pay for purchases with Square's mobile app. Yep. No more cash. No more debit cards even, with their relative security. Now a mobile app on your mobile phone will have all that info.
What could go wrong?
Because, you know, cash is so difficult to carry around when you go to the coffee shop. Why not depend on the reliability of computers not to strip your personal bank account of the cost of a million lattes in a single day.
And heck, with all the spyware built into the free apps elsewhere on your smartypants phone, why would you be worried someone isn't even now devising an electronic back door to your bank account?
I mean gee...it saved you all the trouble of reaching into the same pocket from which you pulled your phone and pulling out cash instead...
America, ya gotta love it.

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