Intriguing comment from Gillian Tett in the FT. She rightly argues markets are deep in Star Trek territory when it comes to technology, but something funny happened during the financial crisis: Evolution turned backward.
But when Lehman Brothers collapsed, evolutionary “progress” crumbled. Suddenly, traders started placing orders by telephone, rather than computer, dealing only with people they knew personally. They were also refusing to take long-term decisions. Sometimes there were entirely rational explanations for this shift, but mostly the reaction was instinctive. “It was almost primeval,” my friend quips.