This is the Cato Daily Podcast for Thursday, October 5th,

2003. I'm Caleb Brown.

Complaints about the gamification of investing abound,

at least from the Securities and Exchange Commission, now the

agency appears to believe that the scale and scope of new technology, think AI,

threatens to change the relationship between investor and broker in a negative way.

The agency has proposed rules that might ensnare tech as mundane as Excel spreadsheets.

Cato's Jack Soloway and Jennifer Schp discuss how investors make decisions and why new tech shouldn't be a scapegoat.

So just my way of comparison, I walk into a casino, The odds are not good. At best, I'm probably going to have 99% of my money

return to me over the time that I'm sitting down and gambling and all the time I'm spending in there, it's

lights, it's free drinks, it's well understood that that's what I'm doing in a casino and this is all totally legal and

fine and I'm you know my wife, hey, don't take any more money down to the floor that you can't afford to lose.

But in the investment realm, on average, the returns are positive over long periods of time.

So what is the SEC hanging its hat on in being critical generally of what is being termed the gamification of investment.

So the SEC views that, views the casino and the markets differently. I don't think that

differentiation makes a lot of sense because there are people that are in the

markets to speculate. There are people that are in the markets to stay there

long term.

And those different motivations result in different ways of trading.

Some people treat the markets more like that casino, where they expect to get lucky sometimes and expect to lose

money other times and other people treat the markets in the way that you described

you put your money in for a long time and you're probably going to have

...