The rise of high-speed algorithmic trading has upset the balance between these two strategies, and it’s frequently complained that computers, unanchored to the real-world value of goods—unbothered at pricing a textbook at tens of millions of dollars and blue-chip stocks at a penny—worsen the irrationality of the market. But while this critique is typically leveled at computers, people do the same kind of thing too, as any number of investment bubbles can testify. Again, the fault is often not with the players but with the game itself.
