WHO IS WATCHING THE WATCHERS?

Frank Pasquale, The Black Box Society: The Secret Algorithms That Control Money and Information (Cambridge, Massachusetts, & London, England: Harvard U. Press 2015) ("For too long, we have assumed that the core aim of financial regulation is disclosure. When every consumer understands the consequences of his actions, we like to believe, and when every investor has the same key data about a security as its seller, the financial playing filed will finally be leveled. And in some cases, sunlight truly is the 'best disinfectant.' But not always. 'Truth' is all too apt to be told slant. And when that happens too many times, just is unwarranted." Id. at 212. From the book jacket: "Every day, corporations are connecting the dots about our personal behavior--silently scrutinizing clues left behind by our work habits and Internet use. The data compiled and portraits created are incredibly detailed, to the point of being invasive. But who connects the dots about what firms are doing with this information? The Black Box Society argues that we all need to be able to do so--and to set limits on how big data affects our lives." "Hidden algorithms can make (or ruin) reputations, decide the destiny of entrepreneurs, or even devastate an entire economy. Shrouded in secrecy and complexity, decisions at major Silicon Valley and Wall Street firms were long assumed to be neutral and technical. But leaks, whistleblowers, and legal disputes have shed new light on automated judgment. Self-serving and reckless behavior is surprisingly common, and easy to hide in code protected by legal and real secrecy. Even after billions of dollars of fines have been levied, underfunded regulators may have only scratched the surface of this troubling behavior." "Frank Pasquade exposes how powerful interests abuse secrecy for profit and explains ways to rein them in. Demanding transparency is only the first step. An intelligible society would assure that key decisions of its most important firms are fair, nondiscriminatory, and open to criticism. Silicon Valley and Wall Street need to accept as much accountability as they impose on others." I don't think what Pasquale proposes will achieve the desired results. The economic benefits to Silicon Valley and Wall Street firms is so huge that they will take increasing drastic steps to evade regulations. Combined with the popular anti-big-government sentiment currently and cyclically in vogue, it is doubtful the government could ever really sustained a meaningful effort to constraint them.).